European Commission
Commission launches public consultation on BEFIT
The much-awaited consultation was published on 13 October. Stakeholders have until 5 January 2023 to provide feedback.
As part of this initiative, EC proposes a new, comprehensive, structural reform of the EU business tax framework. Reform is consistent with and partially based on the principles that underpin the OECD/G20 Inclusive Framework’s 2-pillar approach.
BEFIT is not a new tax. It is a new set of rules to replace 27 different corporate tax systems for the businesses and companies affected.
European Parliament
European Parliament adopts report on the impact of new technologies on taxation
The own-initiative report by Lídia Pereira (EPP/Portugal) that covers crypto and blockchain technologies’ impact on taxation was adopted with 566 votes in favour, 7 against and 47 abstentions on 4 October. The day before, MEPs debated the text. Pereira insisted that “we have a duty to make European legislation more innovation-friendly”.
Commissioner Adina-Ioana Vălean (Transport) told the Plenary that the upcoming 16 November) proposal to revise the administrative cooperation directive (DAC 8) would reflect the new reality of crypto-assets. EC aims to place crypto-assets service providers in a similar position to traditional financial service providers.
Council
Member States want to go beyond soft law on direct taxation in the EU
“No one strictly said we want soft law only, no one ruled it out either”, said Czech Finance Minister Zbyněk Stanjura at a press conference on 10 September. The informal ECOFIN meeting followed the conference in Prague. “Member States thought that there could be more effective taxation if we went beyond soft law”, added Stanjura.
The Czech Council Presidency had brought onto the finance ministers’ table a discussion on to what degree the EU should continue to make ‘hard law’ legislation on taxation, as opposed to using more ‘soft law’ measures. These include recommendations and guidance. After the meeting, it was clear that most EU countries supported continuing legislation and soft law measures.
International Developments
Pascal Saint-Amans to step down as OECD tax Director
Pascal Saint-Amans, the Director for taxation at OECD, is stepping down from his role and will be replaced by Grace Perez-Navarro from 1 November until 31 March 2023. Pascal will join Brunswick Group as a Partner.
Accountancy Europe publishes response to tax enablers consultation
Accountancy Europe has published its response to EC’s public consultation on regulating the activities of “tax enablers”. In its response, Accountancy Europe proposes improvements to the consultation format and questionnaire. It suggests aggressive tax planning indicators and how to make the new rules practicable. An EC legislative proposal is currently expected for the first half of 2023.
