THE EC WANTS a tougher definition of tax havens, as part of plans to stamp out corporate tax avoidance.
After a number of stories involving high-profile businesses and their corporate tax affairs, culminating in appearances in front of the Public Accounts Committee, the EC wants member states to work together and take a tougher line on tax havens.
Drafts seen by the FT set out plans to set a tougher definition of what constitutes a tax haven, including ditching or suspending double taxation agreements with them – where the agreements intend to stop an entity being taxed twice in different jurisdictions through the use of reliefs.
The EC wants general anti-abuse rules implemented locally, while double taxation agreements could include a new rule where income must be taxed by at least one of the countries involved in each agreement.
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