In a long-awaited ‘Communication on business taxation in the 21st century’, the European Commission announced, most notably:

• a legislative proposal, to be published next year, for the publication of effective tax rates paid by large companies.
• a legislative proposal setting out union rules to neutralise the misuse of shell entities for tax purposes, to be published before the end of this year.
• a legislative proposal in 2023 for a new framework entitled BEFIT (‘Business in Europe: Framework for Income Taxation’ with the aim to provide a single corporate tax rulebook for the EU by minimising tax avoidance opportunities in the Single Market. BEFIT would replace its proposal for a Common Consolidated Corporate Tax Base, which has been stuck in the Council for long and will be withdrawn.

In a first reaction, CESI Secretary General said: “As a trade union umbrella organisation representing workers across Europe, and as a voice of tax unions, we have stressed for long that forms of taxation other than on labour need to be effective and fair, too. Also the business sector needs clear rules for fair and adequate taxation without loopholes. The European Commission’s plans are a very positive and important step in the fight against corporate tax evasion and avoidance which continues to be too persisting.”

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