EU should fight tax fraud and evasion, but not as lone front-runner

Ahead of the publication of the European Commission’s anti-tax avoidance package, which is expected to set out a proposal on how the EU should implement the OECD’s Base Erosion and Profit Shifting agreement, BUSINESSEUROPE’s Director General Markus J. Beyrer commented: “European business fully shares the European Commission’s objective to fight tax fraud and evasion.  It is also important to ensure international corporate taxation promotes open markets and investment across borders.  However, the EU must not act as lone front-runner in implementing the OECD BEPS agreement, and must not undermine the competitiveness of EU industry or damage the EU’s attractiveness as an investment location.”

Mr Beyrer added:  “Any new rules will apply to all European companies. It is essential that these rules are properly targeted and proportionate."

“Therefore, we are very concerned by recent Commission statements that it will not carry out a full impact assessment.   This would be in contradiction with the Commission’s own rules that a full impact assessment is provided for when an initiative has the potential to have a significant economic impact.”

Businesses paid nearly € 2 trillion of taxes in the EU in 2012 and are key to growth and employment creation.