GFS LinkedIn
GFS Facebook
GFS Twitter
GFS RSS feed

US chamber backs common EU tax base

Wednesday 16 March 2011 - by Andrew Hickley

An influential trade body representing American businesses in Europe has welcomed a new EU consolidated tax base proposal, saying it will "greatly simplify compliance".

As revealed on Tuesday by GFS News, the proposal would allow companies to submit one corporate tax return across all EU countries in which they operate.

The initiative is designed to reduce the administrative burden involved in submitting up to 27 different tax statements in EU member states.

The collected fee would then be distributed to countries based on their individual corporation tax rate.

The American Chamber of Commerce to the European Union said the proposal could deliver important cost savings for firms operating in more than one country.


William Morris, chair of AmCham EU's tax task force, said: "Cross-border loss consolidation and eliminating cross-border transfer pricing issues is very welcomed by business."

"The commission's proposals to greatly simplify compliance and tax administration across the EU will ease unnecessary burdens on cross-border business."

Morris however sounded a note of caution, saying that the scheme could become "very complex". He said it would be important that the scheme should not become compulsory.

The measures were officially unveiled on Wednesday by tax commissioner Algirdas Šemeta, who argued the proposals would eliminate "huge administrative burdens, heavy compliance costs and legal uncertainties" faced when opening offices in more than one member state.

Commission studies have found that the measure could save medium-sized entities around 67 per cent of their compliance costs when opening a new subsidiary.

Šemeta rejected suggestions that the measures would lead to harmonised tax rates across the EU, despite pressure from France and Germany calling for Ireland's low 12.5 per cent tax rate to be raised.

He labelled tax rates an issue of "national sovereignty" that would remain in the hands of member states.


Article pages: |   1  |  2  |



WHAT DO YOU THINK?
 
Name:
   
Email:
   
Comment:
   
Post as Anonymous
  Display name
   
Please, enter security code
   
 

No comments yet.

STRAW POLL

Will markets in 2012 have a tougher time than 2011?

Yes

No

Don't know

View results

FIND A REGION world regions