Europaudvalget 2014-15 (1. samling)
EUU Alm.del Bilag 162
Offentligt
1430089_0001.png
Bundesrninisterium
der Finanzen
!!::::Ot"
Y._1>_~'!_~.~~~!!~~-
Fratdrni!.!_
RÉPUBUQ..UE FRANçAISE
M
.1
'-:
@
..
Minbtero
dell'Economia
e
delle
Finanze
Mr Commissioner,
The lack of tax harmonisation in the European Union is one of the main causes allowing
aggressive tax planning, base erosion and profit shifting (BEPS) to deve!op within the internal
marReCTliis-siltililionmay-ieaa-10
-1.1ncooperafivel5ehavfours-
between-rvtember
States~
wliicn
directly affects the establishment or ftmctioning of the internal market and the benefits
provided by the Treaty freedoms.
Our citizens and our companies expect us to cope with tax avoidance and aggressive tax
planning.
Tt
is our common duty to meet their expectation by ensuring that everyone pays its
fair share of tax to the State where profits are generated.
Good progress has been made, especially dming the last six months, but now we need to do
more. Indeed, it is obvious that a turning point has been reached in the discussion on unfair tax
competition and base erosion and profit shifting within the EU, which result in undesirable
effects and undermine the realization of the internal market. Since certain tax practices of
countries
and taxpayers have become public recently, the limits of pe1missible tax competition
between Member States bave shifted. This development is irreversible.
We
fully appreciate the Cornmission's prompt reaction
with
the recent announcement of the
initiative regarding tax rulings. Now, no one can deny that
there
is a strong need for real action
and that we must collectively take necessary measures to ensure transparency and fair taxation.
In the context ofthe OECD/G20's final adoption of
the
BEPS conclusions by the end of 2015,
the appropriate response by the EU is the adoption of a set of common, binding rules on
corporate taxation to curb tax competition and fight aggressive tax planning.
We, Finance Ministers of France, Germany and Italy, are convinced that this can only be
reached
through a comprehensive anti-BEPS Directive, to be adopted by the 28 Member States
before end-2015. The diagnosis is made and the solutions are already known, so we should act
without
any delay.
Mr
Pierre MOSCOVICI
European Commissioner for Economie and Financial Affairs, Taxation and Customs
Europcan Commission
Rue de la Loi 200
1040 Brusscl
Belgique
PDF to HTML - Convert PDF files to HTML files
1430089_0002.png
First, the lack of transparency between tax administrations fosters aggressive tax planning, as
their decisions may bave an impact on the location of the tax base within the internal market.
The Commission's proposal to make information exchanges on cross-border tax rulings
mandatory and automatic, which should also cover decisions relating to transfer pricing, is
necessary. Moreover, one should think about stricter conditions and rules for the issuance of
such unilatera! rulings.
In addition, we have a real opportunity to go further in this area. For instance, the EU law could
do more on trusts, shell companies and other non transparent entities, by establishing registers
or other mechanisms requiring that beneficiai owners are identified and available for tax
administrations. The directive should also include disclosure requirements for companies'
intra-European cross-border restructuring and other operations.
Second, transparency is not enough. We can surely not concede that situations where Treaty
freedoms are misused in order to avoid tax remain unaddressed. For this reason, the anti-BEPS
D_rective_ uld_ a_ eneral
_
principle__of_
i
sho_ s.et_ g_
eftèctive taxation.
___________________
_______ -·-------- -------·---- __
As a consequence, the exemptions provided for by the lnterest-Royalties and the Parent-
Subsidiary Directives should be denied if they lead to no effective taxation. On the issue of the
hybrid arrangements, it is particularly crucial to prevent double non-taxation in any sort of
cross border situation.
Consistently, the anti-BEPS Directive should ensure at the EU leve! that tax benefits are not
obtained through inappropriate arrangements. Thus, our work on a common genera! anti-abuse
provision has to be achieved and it must be incorporated into the EU law.
With respect to national provisions like Patent Boxes, we should build on the principle defined
by the OECD and the Code of Conduct Group and provide fora binding framework based on
common rules.
Last, the European Union needs to protect its internal market from tax avoidance through the
use of tax havens. The anti-BEPS Directive will be an opportunity to fix this issue through
counter-measures towards jurisdictions whose behaviour fosters non transparency and
aggressive tax planning. As regards the first point, the EU could take advantage of the work
performed by the Global Forum on Transparency and Exchange oflnformation.
This strong initiative taken by the EU, which could be proposed by the end of 2014, would give
Europe the leading place that it deserves at the international leve!. We will be able to take
advantage of it to obtain progress in the framework of the ongoing OECD/020 discussi on.
Yours sincerely,
~-
1
-
Dr. Wolfgang SCHÀUBLE
~
~
Pier Carlo PADOAN