On 17 June 2015 the European Commission presented an Action Plan for fair and efficient corporate taxation in the EU. This sets out initiatives to address tax avoidance, ensure sustainable tax revenue and thereby improve the corporate tax environment in the EU.

A key part of the Action Plan is the re-launch of the Common Consolidated Corporate Tax Base (CCCTB). The Action Plan also involves the publication of a list of third country non-cooperative tax jurisdictions. In addition to these measures the European Commission is launching a public consultation on whether companies should have to publicly disclose certain tax information.

CCCTB

The consolidated tax base is intended to restrict opportunities for corporate tax avoidance. The Commission is beginning work on a new proposal that will introduce mandatory CCCTB through a step by step approach. Member states can proceed quickly in the first instance on implementing the common tax base, with consolidation as a second step. The new proposal on the CCCTB is to be presented by the Commission in early 2016.

Ensuring Effective Taxation

The European Commission aims to ensure effective taxation by ensuring that companies pay a fair share of tax in the countries where their profits are made. The Commission considers that effective taxation can be achieved without the need to harmonize corporate tax rates in the EU. Measures are being considered to close legislative loopholes, improve the measures on transfer pricing and implement more stringent rules to address preferential tax regimes.

Increasing Transparency

A pan-EU list of countries and territories that have been blacklisted by EU member states is being published to allow screening of non-cooperative jurisdictions and develop an EU strategy for dealing with them. A public consultation will consider the disclosure of certain tax information by companies through mechanisms such as country by country reporting. The consultation will shape future tax policy decisions on these matters.