Conservative MEPs reject proposals for more EU tax harmonisation

26-Mar-2015 @ 18:30

Kay Swinburne Kay Swinburne

Amjad Bashir Amjad Bashir

Amjad Bashir Amjad Bashir

Conservative MEPs have opposed a report calling for more tax harmonisation at an EU level.

The report - supported by Labour, Lib Dem and SNP MEPs - calls for the EU to be given more powers to enforce a compulsory Common Consolidated Corporate Tax Base, and endorses a Financial Transaction tax.

The Conservative Party believes that both these measures would fundamentally undermine the sovereignty of national governments, at a time when tax competition is key to our national strength.

The measures would disproportionately burden our financial institutions as well as consumers, especially pensioners.

Conservative MEPs support tax transparency and reporting at a global level, but there is continual pressure to introduce public country-by-country reporting through an EU Directive.

This should be resisted until the G20-OECD model has been fully implemented and further analysis of the impacts has been undertaken.

Conservative MEP for Wales and Economic Affairs Spokesman Kay Swinburne said: "The ability to set tax policy is fundamental to being a sovereign state. I want George Osborne to set our economic priorities, while working on a global level to ensure fair taxation of companies.

The EU is not the best place to deal with this issue. While the Labour party chose to open tax loopholes while they were in power, the Conservatives have made a concerted effort to close tax loopholes in the UK and work globally to solve the wider issues at stake."

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