On December 1, 2015, the European Parliament’s permanent Economic and Monetary Affairs (ECON) Committee voted on its report entitled “Bringing transparency, coordination and convergence to Corporate Tax policies in the Union”. The report was adopted by 45 votes to 3, with 10 abstentions.
Following the LuxLeaks scandal last year, the European Parliament (EP) decided in December 2014 to launch the drafting of a legislative own-initiative report on Bringing transparency, coordination and convergence to Corporate Tax policies in the Union. The report contains a number of recommendations to the European Commission (EC) which are built on the work of the Parliament’s Special Committee on Tax Rulings, whose recommendations were approved at the plenary session on November 26, 2015. This report is set up in the form of a legislative initiative procedure which means that the EC will have to respond to it (click here for the final text).
The recommendations are divided into the following headings:
(2) coordination, and
The ECON Committee’s report will be put to a vote by the EP as a whole on December 16, 2015. If it is approved, the Commission has to respond to the recommendations within three months, by either submitting a legislative proposal or giving an explanation for not doing so.
During the last year, the EP has put more and more pressure on other European institutions with regard to countering aggressive tax planning and promoting tax transparency. After approving the TAXE Committee’s (Parliament’s Special Committee on Tax Rulings) non-binding report last week, the EP now has the possibility to force the Commission to react to its recommendations by adopting the report on Bringing transparency, coordination and convergence to Corporate Tax policies in the Union in plenary session.
Should you require further assistance in this matter, please contact the EU Tax Centre or, as appropriate, your local KPMG tax advisor.
Robert van der Jagt
Chairman, KPMG’s EU Tax Centre and Partner, Meijburg & Co
Director EU Tax Services, KPMG’s EU Tax Centre
Director, Meijburg & Co