Business Taxation for the 21st Century

Summary:

Communication published by the European Commission on 18 May 2021, setting out a long-term and short-vision for a tax system that is able to support recovery in the aftermath of the COVID-19 (coronavirus) pandemic by ensuring adequate public revenues. The document is also colloquially known as Communication on Business Taxation 21.

Further information:

This Communication comprises a short-term tax agenda for the next two years - one that includes targeted measures for the promotion of production investment, entrepreneurship and effective taxation. It also complements ongoing work on an international corporate tax reform. It provides solutions to some of problems facing the European Union (EU) in terms of business taxation, while aiming to support the green and digital transitions. This short-term agenda builds on the 2020 Tax Action Plan

The document also sets out a long-term vision aimed at providing a fair and sustainable business environment and EU tax system. It takes into account the progress achieved in the G20/OECD discussions on global tax reform. The Communication was published alongside the adoption of a Recommendation on tax treatment of losses during the COVID-19 crisis.

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Commentary and Analysis

Oxfam: Press Release, 18/05/2021: Commission’s Corporate Taxation Plan overtakes global tax negotiations but now Member States must step up to the challenge https://www.oxfam.org/en/press-releases/commissions-corporate-taxation-plan-overtakes-global-tax-negotiations-now-member

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News

Politico, 18/05/2021: Commission fights to stop EU’s tax race to the bottom (again) https://www.politico.eu/article/european-commission-fights-stop-corporate-tax/

Reuters, 18/05/2021: EU eyes another go at more unified European business taxation https://www.reuters.com/world/europe/eu-eyes-another-go-more-unified-european-business-taxation-2021-05-17/

RTÉ News, 18/05/2021: EU proposes 'business-friendly' unified tax rulebook for companies https://www.rte.ie/news/business/2021/0518/1222387-european-union-tax-plan/

The Irish Times, 18/05/2021: State likely to oppose EU plan for unified tax code https://www.irishtimes.com/business/economy/state-likely-to-oppose-eu-plan-for-unified-tax-code-1.4568577

Euronews, 18/05/2021: Brussels unveils new tax agenda ahead of crucial G20 meeting in July https://www.euronews.com/2021/05/18/brussels-unveils-new-tax-agenda-ahead-of-crucial-g20-meeting-in-july

EurActiv, 19/05/2021: EU proposes unified corporate tax regime fit for 21st century https://www.euractiv.com/section/economy-jobs/news/eu-proposes-unified-corporate-tax-regime-fit-for-21st-century/

EUObserver, 19/05/2021: EU Commission eyes unified corporate tax, again https://euobserver.com/world/151890

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Official

European Commission: Press Release, 18/05/2021: Future-proof taxation – Commission proposes new, ambitious business tax agenda https://ec.europa.eu/commission/presscorner/detail/en/ip_21_2430

European Commission: Questions and Answers: Future-proof taxation – Commission proposes new, ambitious business tax agenda (18 May 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_2431

European Commission: Remarks by Executive Vice-President Dombrovskis at the press conference on the Communication on Business Taxation 21 (18 May 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_2546

European Commission: Remarks by Commissioner Gentiloni at the press conference on the Communication on Business Taxation 21 (18 May 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_2547

S&D Group: Newsroom, 18/05/2021: S&Ds support Commissioner Gentiloni’s push for EU tax rulebook to end harmful tax competition and tax avoidance https://www.socialistsanddemocrats.eu/newsroom/sds-support-commissioner-gentilonis-push-eu-tax-rulebook-end-harmful-tax-competition-and

G/EFA Group: Press Release, 18/05/2021: Commission Strong on Tax Proposals but Weak in Ways to Implement Them https://www.greens-efa.eu/en/article/press/commission-strong-on-tax-proposals-but-weak-in-ways-to-implement-them

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