Commissioner Moscovici’s recent speech addressing the future of tax policy aims at developing an ambitious blueprint for taxation in Europe. A link to his speech is provided for reference:
- Enhanced EU transparency in tax matters
- Coordination of Member States tax systems
- Cooperation between Member States, exemplified by EU Tax Transparency Package initiative (refer to 22 March 2015 post)
- Full transparency cost/benefit assessment re: Country-by-Country reporting for public disclosure
- New Action plan before summer (an issue that is fundamental to the EU) building on global developments
- Assess relaunch of Common Consolidated Corporate tax base (CCCTB)
The European Commission is accelerating its efforts, resulting in a potentially different documentation framework than the OECD Guidelines may suggest and/or a basis that the rest of world will follow. The Commission has the necessary momentum and political cohesiveness to achieve its efforts for the EU, although with a possible demarcation with the rest of the world.
CbC reporting by MNE’s continues its actions on center stage as MNE’s should plan for (if they have not already) public disclosure of such reporting. Thereby, the topics of supplemental reporting (i.e. indirect tax contributions, etc.) become more important for senior leaders to consider. Finally, such disclosure warrants a seamless governance process and alignment for addressing future questions by interested parties.