Treasury urged to review avoidance rules
European Commission tells member states to look again at whether they are restricting the single market
European Commission tells member states to look again at whether they are restricting the single market
The Treasury has been urged to review anti-avoidance rules by the European
Commission.
In a crackdown on tax avoidance legislation,
László
Kovács urged member states to review what structures they have in place to
ensure they are not restricting the single market.
Kovács, the commissioner responsible for taxation and customs union, said:
‘The recent rulings by the European Court of Justice in this field clearly show
that Member States need to urgently carry out a critical review of their
existing anti-abuse rules. I understand that member states need to ensure that
their tax bases are not unduly eroded because of abusive and overtly aggressive
tax planning schemes but we cannot tolerate disproportionate obstacles to
cross-border activity within the EU. I invite member states, in order to strike
the proper balance, together to explore the potential and scope for possible
coordinated solutions’
Many UK corporate tax rules have been challenged by companies, who say they
restrict freedom of establishment and the free movement of capital.
Challenges
have been brought over the ‘thin cap’ rules, as well as on controlled
foreign companies legislation.
The rules are designed to stop companies situating profits in countries with
low tax rates, but companies contend that such structures run contrary to the
aims of the European single market.
Further Reading:
European
influence: the EU fire fight
The numbers you crunch tell a story. Your expertis...
16yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe amount of tax saved by businesses through HMRC’s Patent Box scheme has increased by 23% over the last five years, from £1.14 billion in 2017/18 to...
View articleUK Chancellor Jeremy Hunt has hinted at the possibility of further tax cuts in the upcoming spring Budget, during his time at the World Economic Forum...
View articleThe legislation, which introduces a global minimum tax of at least 15% for multinational enterprises, aims to limit tax competition and ensure large c...
View articleThe upcoming tax changes in 2024 will significantly impact businesses and individuals in the UK. Accountants play a crucial role in helping clients na...
View articleAccountants must stay vigilant, adapt their tax strategies to evolving regulations, prioritize transparency, and foster collaboration with tax authori...
View articleAs the government prepares for re-election, PM Sunak promises to control spending in order to bring forth tax cuts next year Read More...
View articleThe Office for National Statistics revealed that the UK economy shrank by 0.3% in March after the economy grew by 0.1% in the previous three months Re...
View articleAs the Spring Budget approaches, dissenters of the UK government’s increasingly complex contractor legislation are baying for change. HMRC has already...
View article