Sharon Bowles: There is a need to tackle double non-taxation

05 March 2012

ECON chairwoman Bowles stressed that it is undesirable that in the EU Internal Market some taxpayers are able to avail themselves of double non-taxation on their cross-border activity, as this gives those taxpayers both a competitive advantage and also reduces contribution to tax.

Speaking at the Brussels Tax Forum, the ECON chairwomen stressed that at the European level, more attention should be dedicated to the surveillance of tax expenditures, since the tightening of expenditure rules (on which a clear focus was put by the Commission over the past few years) can give incentives for the development of tax expenditures in order to circumvent those rules.

She also presented the following:

"On CCCTB and FTT, we will soon finalise our position in ECON, too, with votes scheduled for 20/21 March and 25 April, and again I believe our work will provide useful input to the Danish Presidency to progress on these files in Council.

On the Future of VAT, we as Parliament are happy to see that you have taken on board in your Strategy paper several suggestions from our own-initiative report in response to the Green Paper. We refrained from issuing yet another own-initiative report commenting on the Strategy Paper - which we welcome - but we are looking forward with interest to your subsequent legislative proposals on VAT.

Indeed it is undesirable that in the EU Internal Market some taxpayers, usually companies, are able to avail themselves of double non-taxation on their cross-border activity, as this gives those taxpayers both a competitive advantage compared to other taxpayers who are subject to full taxation, and also reduces contribution to tax from the corporate sector pushing burden onto individuals."

Full speech


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