Commission tax plans threaten national sovereignty, say Conservative MEPs

17-Jun-2015 @ 16:30

Ashley Fox Ashley Fox

Amjad Bashir Amjad Bashir

Amjad Bashir Amjad Bashir

Conservative MEPs have criticised an attempt by the European Commission to re-launch plans for a so-called Common Consolidated Corporate Tax Base (CCCTB). 

The Taxation Commissioner Pierre Moscovici has announced plans today to re-launch a CCCTB across the EU as part of a wider drive to tackle tax avoidance and tax evasion by multinationals.

Negotiations on the Commission's original plan for a CCCTB in 2011 have stalled, however that has not prevented the Commission from attempting to revive it.

Conservative MEPs believe that welcome moves to close legal loopholes should not become an excuse for the EU to impinge on the sovereign right of national governments to set their own corporate tax rates.

Conservative leader in the European Parliament Ashley Fox said: "We believe that more transparency is the answer to tackling aggressive tax planning. However moves by EU officials towards greater harmonisation of taxation policy risk seriously undermining the sovereignty of national governments and the competitiveness of Europe."

The South West and Gibraltar MEP, who also sits on the parliament's temporary committee on taxation, added: "The UK is leading the way in preventing tax avoidance, for example by committing to introduce legislation to implement the model for country-by-country reporting already agreed at the G20 and the OECD.

"Corporate tax avoidance is a problem that stretches beyond the frontiers of Europe. The EU acting in isolation cannot solve this problem."

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