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Parliamentary question - P-001143/2016(ASW)Parliamentary question

    Answer given by Mr Moscovici on behalf of the Commission

    Concerning Google's tax treatment in the United Kingdom, the Commission is aware of the tax arrangement to which the Honourable Member refers. The Commission has received market information on that arrangement from several sources, which it is currently reviewing, and on that basis will decide on any possible further steps.

    In its Action Plan of June 2015, the Commission announced that it is planning to re-launch the Common Consolidated Corporate Tax Base (CCCTB) initiative, which has been pending in Council as a Commission proposal since March 2011. The CCCTB offers a holistic solution against aggressive tax planning and contributes to bringing taxation where value is generated. In fact, tax mitigation schemes which build on manipulating transfer pricing would be eradicated within the consolidated group because the taxable base within the EU would be apportioned across group members through a formula based on three equally-weighted factors: assets, labour and sales. The re-launched CCCTB will be a staged approach, consisting of two steps: first, focusing on the computation of the tax base and then, moving forward to consolidation.

    On 28 January 2016, the Commission adopted an Anti-Tax Avoidance Package (ATAP) in order to ensure that Member States implement, in a coordinated fashion, the outputs of the project against Base Erosion and Profit Shifting (BEPS) by the Organisation for Economic Cooperation and Development (OECD). The Package includes proposals for Directives in the field of country-by-country reporting and anti-tax avoidance as well as a recommendation against tax treaty abuse and a communication on the Commission's external strategy.