3.ADDITIONAL MEASURES FOR A BETTER TAX ENVIRONMENT FOR BUSINESS
Any review of the corporate tax framework in the EU must have a firm focus on creating an environment which encourages business and fosters growth and jobs in the Single Market. As outlined above, unfettered tax competition which facilitates aggressive tax planning by certain companies creates competitive distortions for businesses, hampers growth-friendly taxation and fragments the Single Market.
In order to create a more favourable business environment in the EU, there must be greater coordination between Member States on tax policy, along with measures to reduce administrative burden, compliance costs and tax obstacles in the Single Market.
A number of the measures set out in this Action Plan contribute to this goal. Revising Transfer Pricing or Permanent Establishment rules to better reflect modern business realities, for example, may bring practical benefits for cross-border companies in the EU.
The CCCTB, as proposed by the Commission, would be a major step towards a better tax environment for businesses. However, if consolidation is to be delayed in the first phase of the new approach to CCCTB, other initiatives should enhance the EU's tax environment for companies and investors. The Commission intends to proceed with two important new initiatives in this respect.
