EU tax plan would increase compliance costs
A plan to centralise tax administration in the EU could increase compliance cost for companies using low tax jurisdictions
A plan to centralise tax administration in the EU could increase compliance cost for companies using low tax jurisdictions
COMPLIANCE costs would rise under a new European plan to simplify tax administration for international businesses, according to research from Ernst & Young.
Under the plan, known as the common consolidated corporate tax base, international business would be given the opportunity to have their tax managed centrally instead of seperately for each EU state. Tax revenues would then be parcelled out to the EU members in which companies operate.
The proposal has been around for some years but was suspended in 2008. A new version is due to be aired next month but the E&Y study appears to cast doubt on whether it would cut the compliance burden
Conducted for Irish business groups, where the tax rate is 12.5%, the study suggests compliance costs would climb by 13%. It suggests companies that house intellectual property in Ireland but manufacture elsewhere would pay more.
E&Y’s head of tax Chris Sanger is quoted in the Financial Times saying the new plan would undermine the benefits of having a lower corporate tax rate.
More about:
The numbers you crunch tell a story. Your expertis...
13yEmbracing 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 EU is deeply divided over how to increase the tax take from tech giants such as Google, Apple and Amazon, who have recently come under fire for be...
View articleAdvisers anticipate a surge in the number of new tax cases sent to the Court of Justice of the European Union (CJEU) following the UK’s decision to le...
View articleThe CIoT has called on the government to rethink its approach to ensuring online sellers pay the correct amount of VAT. Read More...
View articleThe European Commission said it will examine how to shed more light on tax advisers' activities and create effective disincentives for those that prom...
View articleOsborne's tax move could influence the sensitive negotiations about the UK’s future relationship with Europe Read More...
View articleBritain will continue to attract investment by reducing corporation tax by 5%, Osborne reveals Read More...
View articleThe accountancy world has reacted to the news that the UK has voted to leave the EU Read More...
View articleThe European Parliament has given the green light on an EU investigation into the Panama Papers Read More...
View article