European Commission
Commission planning several delegated acts on CBAM
Later this year the European Commission (EC) intends to publish delegated acts to implement specific provisions of the EU’s carbon border adjustment mechanism (CBAM).
This includes the rules and criteria governing the role of accredited verifiers, who among other things will need to verify the CBAM declarations submitted by declarant entities.
In the fourth quarter of 2024, the EC will publish a delegated regulation that sets out the conditions that national accreditation bodies must observe when granting accreditation to carry out verification activities for CBAM purposes. This initiative will also set out rules on:
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the control and oversight of accredited verifiers
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withdrawing accreditation
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the mutual recognition and peer evaluation of accreditation bodies
Moreover, an implementing regulation is likewise planned for the fourth quarter of 2024 that will set out more details on:
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verification principles set out in the CBAM Regulation
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qualifications of verifiers under the Regulation
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aligning these qualifications with those for verifiers under the EU’s emissions trading system (ETS)
Additional delegated acts are expected on additional aspects of CBAM, such as for example the sale and repurchase of CBAM certificates, and rules for customs procedures and communication requirements.
Commission launches targeted consultation on tax dispute resolution
EC published the consultation on 12 March, and stakeholders may provide feedback until 10 May.
European Parliament
FISC hearing on tax obstacles in the Single Market
European Parliament’s (EP) FISC Subcommittee hosted on 13 February a public hearing on “Tackling Tax Obstacles in the Internal Market and the Role of Tax Policies in Promoting Economic Growth”. A panel of experts presented their views and discussed with FISC Members on how to address remaining tax-related obstacles and distortions in the Single Market.
Mr Enrico Letta, President of the Jacques Delors Institute, mandated by the EU Council to prepare a high-level report on the future of the EU’s internal market and to present it at the 20-21 March 2024 European Summit, also participated in the hearing to comment on tax-related aspects of his work. He highlighted the importance of removing tax obstacles especially to benefit SMEs’ cross border operations. One of the ideas he flaunted at the hearing was to experiment with a so-called “28th regime for SMEs”, both on corporate law and taxation.
During the debate, MEPs focused their questions on which tax barriers to the Single Market legislators should focus on tackling, on how enforcement could be improved, on the best way to get member states to agree to a significant EU tax reform, and on the need to simplify the rules.
ECON adopts positions on HOT and transfer pricing proposals
EP’s ECON Committee adopted its opinions on the EC proposals on transfer pricing and setting up a Head Office Tax system for SMEs (HOT).
The transfer pricing opinion, led by MEP Kira Marie Peter-Hansen (Greens-EFA/Denmark), was adopted with 28 votes in favour, 3 votes against and 2 abstentions. The HOT opinion, prepared by MEP Lidia Pereira (EPP/Portugal), was voted through with 30 votes in favour and 3 votes against.
Both draft opinions are scheduled to be adopted by EP Plenary on 10 April.
MEP questions and replies
Commission says revenues collected from CBAM could allow for more support for developing countries for adapting to the regime
