TaxCorporate TaxControversial single EU tax base to be put on ice

Controversial single EU tax base to be put on ice

Hopes of a single European tax base fade as France admits it will not be pressing the scheme

Plans to push forward a common consolidated corporate tax base are to be put
on the back burner by France when it takes up its presidency next month.

The announcement follows Ireland’s vote to reject the Lisbon Treaty and is
being interpreted as signalling to the Irish that the EU is not intent on
encroaching on sovereignty.

‘It is on the agenda but we are not pushing it. It is alive, but not kicking
very much,’ Christine Lagarde, France’s finance minister, told the
Financial
Times
.

Lagarde’s comments in April that France would put tax base harmonisation on
its agenda later this year worried Ireland, which has been a strong opponent of
plans to harmonise the way corporate tax is calculated. Like the UK it feared
that it would lead to harmonised tax rates.

She also said that France wanted to push for a cut in VAT rates for
labour-intesive services, including restaurants and hotels, and on
energy-efficient products.

It also plans to table an amendment for a mechanism to reduce VAT on fuel
when oil prices risk triggering ‘social unrest’.

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2w Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2w Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

3w Alia Shoaib, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

1m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

2m Emma Rawson
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3w Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

3w Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

4w Austin Clark, Reporter