The European Parliament has released a study on “Selected International Third-Country Tax-Governance Issues” facing taxation challenges which could evolve in the coming decade.
While European countries proceed towards a more transparent and compliant tax environment, European Parliament’s study investigate potential issues that may be faced over the coming decade.
The first section of the paper provides a summary of some of the megatrends that will affect tax systems and then oscillates with some new trends in tax levels and structures. An examination of some of the challenges that EU tax policy makers face and how EU governments are responding to such challenges will follow.
The study has been released shortly after the drafting of the new Action Plan, coming to set a fairer corporate taxation system within the EU, which was published by the European Commission earlier this year. An EU-wide list including 30 third country non-cooperative tax jurisdictions is included in the action plan, a list that was compiled on behalf of the Member States.
As part of the study’s findings, it has underlined the eagerness of the international community to work closer regarding the effective exchange of information on various tax matters. According to the study, it is vital that the EU sets an example in encouraging other countries to follow the minimum standard of “good governance in tax matters”.
In its conclusion, the study indicates that governments will only be successful in countering base erosion and profit shifting if they act with both aggressive tax planning and aggressive tax competition, in order to assure greater revenue and fair tax collection.