Parliament to debate and vote its stance on anti-tax avoidance package
Parliament is to debate its stance on the EU Commission proposal for an anti-tax avoidance directive on Tuesday and vote a resolution on Wednesday. The proposal, which aims to close loopholes used by corporate tax avoiders, was welcomed by Parliament's Economic and Monetary Affairs Committee in a resolution voted on 24 May. MEPs nonetheless advocated stricter limits on deductions for interest payments and an effective corporate tax rate on foreign income of 15%.
The anti-tax avoidance directive reflects the OECD's action plan to limit tax base erosion and profit shifting (BEPS) and follows recommendations made by Parliament in November (TAXE 1 report) and December 2015 (legal recommendations drafted by Anneliese Dodds (S&D, UK) and Luděk Niedermayer (EPP, CZ).
It builds on the principle that tax should be paid where profits are made and includes legally-binding measures to block the methods most commonly used by companies to avoid paying tax. It also proposes common definitions of terms like “permanent establishment”, “tax havens”, “minimum economic substance”, “transfer prices” and others hitherto open to interpretation.
Debate: Tuesday, 7 June
Vote: Wednesday, 8 June
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