The EU elections do not attract much tax interest. That's a shame, because they should.
Whilst it is true that the EU does not have direct taxing powers it has significant influence over tax, nonetheless.
Firstly, in my opinion there has been no single body that has been more effective in promoting rules to tackle tax abuse than the EU. Its Code of Conduct on Business Taxation was extraordinarily effective at one stage in tackling domestic tax abuse in individual country's tax legislation. It could be so again. It should be used to stop the abuse in the UK's patent box, for example.
The EU Savings Tax Directive was the first really effective automatic information exchange arrangement. It's now, finally, been extended and is now likely to crack open many of the UK's tax havens as well as Luxembourg and Austria. No one has achieved more than that.
And the Combined Consolidated Corporate Tax Base may remain a pipe dream, but it is a genuine attempt at solving the real problems in international corporate taxation by introducing a unitary tax base.
And the EU has been brave enough to adopt country-by-country reporting.
It's also pushed forward on extractive industry issues.
But it's failing to deliver appropriate accounting standards for tax because it outsourced this task to the International Financial Reporting Standards Foundation - but it has, recently, woken up to their failings.
And VAT, of course, is an EU tax.
So the EU matters when it comes to tax. The EU is, albeit slowly, pioneering on ways to beat tax evasion and avoidance. Think about that please. Some are more committed than others on these issues.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
My hope is that Left and Centre parties across Europe could sign up to a common programme on this and a few other issues. The proponents of neo-liberal ideas work at an international level. They need to be confronted at this level as well as in our own nations.
Whilst I don’t disagree with a lot of the tax rules that the EU is promoting, there is a disconnect between a largely unaccountable body and the practical implementation of taxation. In short it’s not hard for anyone to come up with ideas that are not properly grounded.
The EU in its present form is a wasteful bureaucratic body, knee deep in fraud- I would not hold it up as a model for anything. International action does not have to be through this particular body, which is Euro-centric anyway. VAT a European
tax? – are you serious?- ever tried to claim input tax from other Euro countries?
Answer to the last – yes
Was not a problem as I recall