Brussels, 28.1.2016
SWD(2016) 6 final
COMMISSION STAFF WORKING DOCUMENT
Accompanying the document
Communication from the Commission to the European Parliament and the Council – Anti Tax Avoidance Package: Next Steps towards delivering effective taxation and greater tax transparency in the EU
{COM(2016) 23 final}
A fair and efficient corporate taxation is a cornerstone of a deeper and fairer Single Market which is a Commission priority 1 . Some companies use aggressive tax planning techniques to exploit loopholes in tax systems and mismatches between national rules to reduce their tax liabilities. These activities undermine the fair burden sharing amongst taxpayers and fair competition between businesses. It also means fewer revenues available to finance public goods or investment. The economic crisis of recent years requires contributions to the consolidation of public finances from all taxpayers. However, while many citizens face an inescapable increase in taxes, the public perception is that other economic actors and in particular multinational enterprises can get around contributing their fair share by their capacity for tax optimization, thus artificially lowering their taxable income.
The Commission has been taking several initiatives to counter corporate tax avoidance, based on a central principle: ensuring that taxes are paid where profits are generated. The EU has enhanced transparency by ensuring automatic exchange of information on tax rulings. It also actively contributed to the OECD/G20 work on the Base Erosion and Profit Shifting (BEPS) 2 project. Furthermore, the European Parliament has called for more action and coordination in addressing the fight against tax avoidance. 3
This document first introduces the issue at stake, the scope of the package, the consultation process and complementary initiatives at the EU level. Secondly, it presents more in depth the analysis of the key drivers and possible solutions to address tax avoidance. The third section presents the objectives and features of the proposed policy initiative in line with Member States' commitments.
