The Council approved conclusions today setting a tax decluttering and simplification agenda with a view to contributing to the EU’s competitiveness.
The conclusions represent the Council’s views and give orientations on possible upcoming initiatives in the field of taxation, in the context of improving the EU’s competitiveness and reducing administrative, regulatory and reporting burdens.
Among other things, the conclusions call for a review of the existing EU legislative framework in the area of taxation that should be based on four principles, also to be applied to current and future tax initiatives:
- reducing the reporting, administrative and compliance burdens for member states’ administrations and taxpayers
- eliminating outdated and overlapping tax rules and, where relevant
- increasing the clarity of tax legislation
- streamlining and improving the application of tax rules, procedures and reporting requirements
The conclusions ask for a thorough analysis of the EU legislative framework and a clear identification of its scope and term. To begin with, this process could include a review of the existing directive on administrative cooperation in the field of taxation, in particular in relation to reportable cross-border arrangements, and of the directive laying down rules against tax avoidance practices that directly affect the functioning of the internal market. Furthermore, it should also cover a review of the complete EU taxation legislation, including indirect taxation.
The Council invites the Commission to consult relevant stakeholders and introduce an operational, pragmatic and ambitious action plan including a feasible timeline and a road map of the envisaged work before the end of the autumn 2025.
Background
In its conclusions of April 2024 , the European Council stressed the need for a ‘new European competitiveness deal, anchored in a fully integrated Single Market’. The European Council invited the Commission to ‘significantly reduce the administrative and compliance burden on companies and national authorities, prevent over-regulation and ensure the enforcement of EU rules.
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First published in this link of The European Times.
