FISC - European Parliament

Video of a committee meeting - Tuesday, 27 June 2023 - 12:59 - Subcommittee on Tax Matters

Tue, 27 Jun 2023 15:01:07 GMT

Length of video : 121'

Disclaimer : The interpretation of debates serves to facilitate communication and does not constitute an authentic record of proceedings. Only the original speech or the revised written translation is authentic.
Source : © European Union, 2023 - EP

Hearings - The role of tax incentives in achieving EU policy goals - 27-06-2023 - Subcommittee on Tax Matters

Tue, 27 Jun 2023 14:29:04 GMT

On 27 June 2023, from 15:00 to 16:30, the FISC Subcommittee will host a public hearing on “The role of tax incentives in achieving EU policy goals”. While they come in many shapes and forms (accelerated depreciations, carry-forwards of losses...), tax incentives for businesses are mostly introduced to support either wider economic objectives (growth, job creation, the need to attract foreign direct investment) or specific policies (such as the energy transition).

However, these tax measures have been criticised in recent years as they can be used or abused to lower the corporate tax payments of enterprises significantly, thereby possibly causing a gap in overall tax revenue.

In response, policy-makers have initiated several reforms (patent boxes, minimum tax rate of 15% in the framework of the OECD Pillar 2 reform) in order to counter tax incentives' abuse.

At the same time, the US Inflation Reduction Act has fuelled the discussion about the future role of tax credits in stimulating the economy. In this public hearing, experts will examine and discuss the potential impact of tax incentives on EU policy goals, in particular in promoting a greener Europe and in supporting economic objectives.

Location : European Parliament - Building Paul-Henri Spaak - Meeting room SPAAK 4B-1 - Brussels

Draft programme of the hearing
Webstreaming
Dr Markus Meinzer, Director of Policy at the Tax Justice Network
     Biography
     Statement
     Presentation
Dr Ana Cinta González Cabral, Economist at the Centre for Tax Policy and Administration, Tax Policy and Statistics Division (OECD)
     Biography
     Statement
Dr Björn Kauder, Senior Economist for Financial Policy and Tax Policy, Institut der deutschen Wirtschaft Köln (German Economic Institute)
     Biography
     Statement
     Presentation
Background document provided by the European Parliamentary Research Service (EPRS)
     Tax incentives after the minimum corporate tax ('Pillar Two')

Source : © European Union, 2023 - EP

Latest news - Next meeting of the FISC Subcommittee - Subcommittee on Tax Matters

Tue, 27 Jun 2023 14:28:09 GMT

The next meeting of the FISC Subcommittee will take place on 17 July 2023.

From 15:00 to 16:15, the Subcommittee will host a public hearing on "Tackling the role of enablers involved in facilitating tax evasion and aggressive tax planning in the European Union (SAFE)". This will be followed by the presentation of the draft own-initiative report on "Role of tax policy in times of crisis" from 16:15 to 16:40 and the discussion of amendments on the draft own-initiative report on "Further reform of corporate taxation rules" from 16:40 to 17:00.

Webstreaming
FISC Workload - Upcoming Hearings, Exchanges of Views and Other Events - as of 21 April 2023
FISC calendar of 2023 meetings

Source : © European Union, 2023 - EP

Publications - Coordinator's decisions 2023 - Subcommittee on Tax Matters

Tue, 27 Jun 2023 12:20:01 GMT

23 May 2023
25 April 2023
28 February 2023
25 January 2023

Source : © European Union, 2023 - EP

Highlights - INI report on "Further Reform of Corporate Taxation Rules" - Subcommittee on Tax Matters

Tue, 20 Jun 2023 08:48:36 GMT

On 27 June 2023, the rapporteur for the own-initiative report on "Further Reform of Corporate Taxation Rules" will present and discuss her draft report with other FISC Members. In October 2021, the OECD/G20 Inclusive Framework on BEPS reached a landmark agreement on a comprehensive two-pillar reform of global tax rules. This reform, which has been endorsed by 138 out of 141 members of the Inclusive Framework, introduces a global minimum effective corporate tax rate of 15% as well as new rules.

These new rules would make possible to tax profits of very large multinational companies in countries where they do not have a physical presence. Against this background, the FISC Subcommittee has looked at the remaining challenges in the area of corporate income tax in the framework of public hearings, exchanges of views and studies.

The draft report highlights the compliance costs imposed on businesses due to existing EU tax legislation. The rapporteur suggests various measures to ease this burden, including a regulatory moratorium and a 'competitiveness check' on new measures proposed by the Commission. The draft report further suggests that tax breaks and other incentives should be considered to support the competitiveness of European businesses. Finally, the rapporteur calls on the Commission to sequence the implementation of the upcoming BEFIT proposal and Pillar 2 of the OECD's tax reform to provide European businesses sufficient time to prepare for the regulatory changes.

Procedure file - 2022/2146(INI)
Draft own-initiative report on "Further Reform of Corporate Taxation Rules"
Isabel Benjumea - EPP Rapporteur
Webstreaming

Source : © European Union, 2023 - EP

Highlights - Public hearing on "The role of tax incentives in achieving EU policy goals" - Subcommittee on Tax Matters

Thu, 15 Jun 2023 12:33:44 GMT

In response, policy-makers have initiated several reforms (patent boxes, minimum tax rate of 15% in the framework of the OECD Pillar 2 reform) in order to counter tax incentives' abuse.

Public hearing on "The role of tax incentives in achieving EU policy goals"

Source : © European Union, 2023 - EP

Draft agenda - Tuesday, 27 June 2023 - PE749.310v01-00 - Subcommittee on Tax Matters

Thu, 15 Jun 2023 10:13:48 GMT

Source : © European Union, 2023 - EP

Highlights - FISC mission to London, United Kingdom - Subcommittee on Tax Matters

Thu, 15 Jun 2023 06:45:23 GMT

Members of the FISC Subcommittee will travel to London, United Kingdom, from 19 to 20 June 2023, in order to meet key political decision-makers and stakeholders to discuss developments in the area of international taxation and the relation between the EU and the UK in this field.

The delegation, led by the FISC Chair Mr Paul Tang, will meet with members of the Public Accounts Committee, the Treasury Committee and the All-Party Parliamentary Group on Anti-Corruption and Responsible Tax of the House of Commons, as well as HM Treasury Minister Baroness Joanna Penn and stakeholders from civil society, professional associations and academia.

The discussions will focus on the implementation of the OECD/G20 international tax reform, UK efforts to combat tax evasion and avoidance, and the role of intermediaries and International Financial Centres in the fight against tax evasion and tax avoidance.

Moreover, discussions will also include tax policies in the UK post-Brexit and the impact on the EU, administrative cooperation, transparency rules, windfall profit taxes, the future of financial service taxes and the implementation of the Windsor Framework in the area of VAT and excise duties.

FISC mission to London, UK

Source : © European Union, 2023 - EP

Missions - FISC mission to London, United Kingdom - 19-06-2023 - Subcommittee on Tax Matters

Thu, 15 Jun 2023 06:43:48 GMT

Location : London, United Kingdom

Draft programme of the mission

Source : © European Union, 2023 - EP

Hearings - The role of tax policy in controlling inflation - 23-05-2023 - Subcommittee on Tax Matters

Tue, 23 May 2023 13:11:18 GMT

On 23 May 2023, from 15:00 to 16:30, the FISC Subcommittee will host a public hearing on “The role of tax policy in controlling inflation and promoting sustainable growth in the context of economic recovery”.

A sustained period of high inflation, which is fuelled by the energy crisis and the repercussions of the war in Ukraine, has had a negative impact on businesses, increased poverty and widened social inequalities within the EU. As food and energy prices are drastically increasing, households in less wealthy EU countries or with low income are impacted more strongly by the inflation, due to higher relative spending on essential items such as food, housing, and utilities. This situation calls for a quick and possibly joint tax policy response from the EU and its Member States.

The purpose of the hearing will be to discuss how tax policy can help to control inflation and to promote sustainable growth in the context of economic recovery in the EU. It will also be an opportunity to examine possibilities for new rules of VAT rates, inflation adjustments of tax brackets and other tax measures, such as tax incentives in renewable energy, and taxes on environmentally harmful activities.

Location : European Parliament, Paul Henri Spaak building (meeting room: SPAAK 5B1), Brussels

Draft programme of the hearing
Webstreaming
Mr Ricardo Martner, Commissioner of the Independent Commission for the Reform of International Corporate Taxation (ICRICT), former Chief Economist at the United Nations Economic Commission for Latin America and the Caribbean (ECLAC)
     Biography
     Statement
Mr Marcel Olbert, Assistant Professor of Accounting at the London Business School
     Biography
     Statement
     Powerpoint presentation
Ms Anne-Laure Delatte, Economist at the French Institute for Scientific Research (CNRS), Fellow at OFCE-Sciences Po (Observatoire Français des Conjonctures Economiques)
     Biography
     Statement
Background document provided by the European Parliamentary Research Service (EPRS)
     Taxation in times of high inflation

Source : © European Union, 2023 - EP

Highlights - Public hearing on "The role of tax policy in controlling inflation" - Subcommittee on Tax Matters

Mon, 15 May 2023 09:25:31 GMT

Public hearing on “The role of tax policy in controlling inflation and promoting sustainable growth in the context of economic recovery”

Source : © European Union, 2023 - EP

Subject files - The Pandora Papers - Subcommittee on Tax Matters

Thu, 11 May 2023 13:15:44 GMT

On 3 October 2021, the International Consortium of Investigative Journalists (ICIJ) revealed an unprecedented data leak of records, coming from 14 offshore services firms around the world and documenting the beneficial owners of corporate entities established in secrecy jurisdictions. The Pandora Papers showed notably how high-net-worth individuals are assisted by intermediaries to shield income and assets from fair taxation and scrutiny.

The European Parliament held a plenary debate on the revelations on 6 October 2021 and adopted a resolution on 21 October 2021, including a call for measures to tackle the misuse of shell companies, to enhance the exchange of information between tax administrations and to strengthen the regulation of intermediaries.

The FISC Subcommittee held a series of public hearings on different aspects of the Pandora Papers, such as the role of intermediaries and the role of certain jurisdictions appearing prominently in the revelations. It is currently preparing an own-initiative report on the 'Lessons learnt from the Pandora Papers and other revelations'.

(last updated: September 2022)

Plenary package - Topic: "Fight against tax avoidance"
Resolution on the Pandora Papers: implications for the efforts to combat money laundering, tax evasion and tax avoidance

Source : © European Union, 2023 - EP

Publications - Own-Initiative reports - Subcommittee on Tax Matters

Thu, 11 May 2023 13:10:07 GMT

Own-Initiative Report on Digital Taxation - Co-rapporteurs: Andreas Schwab (EPP) & Martin Hlaváček (Renew)
Own-Initiative Report on “Reforming the EU policy on harmful tax practices” - Rapporteur: Aurore Lalucq (S&D)
Own Initiative Report on "Implementation of the 6th VAT Directive: what is the missing part to reduce the EU VAT gap?" - Rapporteur: Olivier Chastel (Renew)
Own-Initiative Report on "A European Withholding Tax Framework" - Rapporteur: Pedro Marques (S&D)
Own-Initiative Report on "Lessons learnt from the Pandora Papers and other revelations" - Rapporteur: Niels Fuglsang (S&D)

Source : © European Union, 2023 - EP

Draft agenda - Tuesday, 23 May 2023 - PE746.988v01-00 - Subcommittee on Tax Matters

Tue, 09 May 2023 09:22:50 GMT

Source : © European Union, 2023 - EP

Video of a committee meeting - Tuesday, 25 April 2023 - 12:59 - Subcommittee on Tax Matters

Tue, 25 Apr 2023 15:08:28 GMT

Length of video : 129'

Disclaimer : The interpretation of debates serves to facilitate communication and does not constitute an authentic record of proceedings. Only the original speech or the revised written translation is authentic.
Source : © European Union, 2023 - EP

Hearings - The Work of National Tax Authorities: Resources, Strategies, Cooperation - 25-04-2023 - Subcommittee on Tax Matters

Tue, 25 Apr 2023 14:01:18 GMT

On 25 April 2023, from 15:00 to 16:45, the FISC Subcommittee will host a public hearing on “The Work of National Tax Authorities: Resources, Strategies, Cooperation”.

Tax fraud, evasion and avoidance, combined with digitalisation and new business models, present continued challenges to the Union and the functioning and performance of national tax administrations. The latter need to provide swift and possibly joint responses, while at the same time avoiding unnecessary administrative burden for citizens and businesses engaging in cross border transactions.

The purpose of the hearing will be to discuss with experts how to support tax authorities in order to enhance the functioning of the internal market, foster its competitiveness and how to protect the financial and economic interests of the Union and its Member States, including by protecting national and EU budgets from tax fraud, tax evasion and tax avoidance, and how to improve tax collection. It will also be an opportunity to discuss the best practices implemented by Member States that can contribute to a better cooperation between national tax authorities and a more efficient use of resources.

Location : European Parliament, Paul Henri Spaak building (meeting room: SPAAK 1A2), Brussels

Draf programme of the hearing
Webstreaming
Ms Helena Alves Borges, Director-General of the Portuguese Tax and Customs Authority
     Biography
     Statement
Ms Ana Carmina Gamboa, Vice President of the Union of Finance Personnel in Europe
     Biography
     Statement
     Powerpoint presentation
Mr Levan Kakava, President of the Intra-European Organisation of Tax Administrations
     Biography
     Statement
Ms Zita Spranginiene, Chairwoman of the Lithuanian State Tax Inspectorate Employee's Trade Union
     Biography
     Statement
     Powerpoint presentation
Background document provided by the European Parliamentary Research Service (EPRS)
     The work of tax administrations: Resources, strategies and cooperation

Source : © European Union, 2023 - EP

Draft agenda - Tuesday, 25 April 2023 - PE746.657v01-00 - Subcommittee on Tax Matters

Tue, 11 Apr 2023 14:00:56 GMT

Source : © European Union, 2023 - EP

Highlights - The Work of National Tax Authorities: Resources, Strategies, Cooperation - Subcommittee on Tax Matters

Mon, 03 Apr 2023 12:59:46 GMT

On 25 April 2023, from 15:00 to 16:45, the FISC Subcommittee will host a public hearing on “The Work of National Tax Authorities: Resources, Strategies, Cooperation”.

Public hearing on "The Work of National Tax Authorities: Resources, Strategies, Cooperation"

Source : © European Union, 2023 - EP

Other events - Exchange of views with the European Chief Prosecutor - 28-03-2023 - Subcommittee on Tax Matters

Wed, 29 Mar 2023 06:48:06 GMT

On 28 March 2023, the FISC Subcommittee had an exchange of views with Ms Laura Kövesi, European Chief Prosecutor from the European Public Prosecutor's Office (EPPO) on the “Enhancement of available tools in the fight against VAT Fraud”.

The EPPO's recent and so far most prominent intervention in relation to VAT carousel fraud, the 'Operation Admiral', has revealed once again the gravity of VAT fraud in the EU. It revealed a scheme that is estimated to have cost governments €2.2 billion and has involved organised crime groups in 14 Member States. The complexity of such cross-border schemes requires elaborate tools and close cooperation between prosecutors in multiple countries to fight against them.

The aim of this exchange of views is to shed light on VAT carousel fraud in the EU, costing around €50 billion annually in tax losses to the Member States and on EPPO's daily mission to uncovering these fraud schemes. FISC Members will have the opportunity to discuss the main legal and administrative obstacles to the fight against VAT carousel fraud as well as how the European Parliament and EPPO can work together to put an end to VAT fraud in the EU.

Location : European Parliament, SPAAK 4B01, Brussels

EPPO Annual Report 2022
Webstreaming (recording)

Study - The effectiveness and distributional consequences of excess profit taxes or windfall taxes in light of the Commission’s recommendation to Member States - PE 740.076 - Subcommittee on Tax Matters

Tue, 28 Mar 2023 22:00:00 GMT

This study analyses the design and functioning of windfall profit taxes for energy suppliers in the EU. Based on profit data from 2021, the estimated revenue gains from the solidarity contribution amount to 4.4 bn EUR for the selected sample of firms. Applying the revenue cap to power prices of 2022 suggests a tax revenue of 106 bn EUR. The actual tax revenue might diverge substantially from these numbers due to different energy price levels during the application period. The revenue can be redistributed according to the member states’ priorities to face hardship of the energy crisis. Despite efficiency in theory, investment distortions might arise if investors expect the tax instrument to be extended to other sectors.

Study : EN

Executive summary : EN

Video of a committee meeting - Tuesday, 28 March 2023 - 12:59 - Subcommittee on Tax Matters

Tue, 28 Mar 2023 16:38:16 GMT

Length of video : 219'

Disclaimer : The interpretation of debates serves to facilitate communication and does not constitute an authentic record of proceedings. Only the original speech or the revised written translation is authentic.
Source : © European Union, 2023 - EP

Hearings - Public hearing on “Case studies on member states national tax policies - Germany" - 28-03-2023 - Subcommittee on Tax Matters

Tue, 28 Mar 2023 14:24:22 GMT

On 28 March 2023, the FISC Subcommittee had a public hearing on “Case studies on member states national tax policies - Germany: implemented national tax reforms and the combat against aggressive tax schemes”

The purpose of this hearing is to hear experts on the implemented national tax reforms and the combat against aggressive tax schemes in Germany. Members will have the opportunity to examine remaining challenges and lessons to be learned for the EU and other Member States.

This hearing is part of a series of hearings focusing on national tax policies and their impact on the EU Single Market. Previous hearings have addressed tax policies in the Netherlands, Ireland and Luxembourg .

The following experts have been invited:

Dr. Daniel Fehling, Head of Division, International Tax Policies - Direct Taxation, Germany's Federal Ministry of Finance;

Prof. Dr. Reinald Koch, Professor for "Business Administration and Business Taxation" at the Catholic University of Eichstaett-Ingolstadt.

Ms Bettina Rodenberg, Head of Global Tax & Trade Group, Henkel AG & Co.

Location : European Parliament - Building Paul Henri Spaak - Meeting room SPAAK 4B1 - Brussels

Draft programme of the hearing
Webstreaming (recording)
Dr. Daniel Fehling, Head of the unit on international tax policies in the Federal Ministry of Finance
     Biography
     Statement
Prof. Dr. Reinald Koch, Professor for “Business Administration and Business Taxation” at the Catholic University of Eichstaett-Ingolstadt
     Biography
     Statement
Ms Bettina Rodenberg, Head of Global Tax & Trade Group, Henkel AG & Co.
     Biography
     Statement
Background document provided by the European Parliamentary Research Service (EPRS)
     Germany's tax reforms and the fight against tax fraud and evasion

Other events - Exchange of Views with the OECD - 28-03-2023 - Subcommittee on Tax Matters

Tue, 28 Mar 2023 14:11:53 GMT

On 28 March 2023, from 15:00 to 16:00, the FISC Subcommittee had an exchange of views with Dr. Achim Pross, Deputy Director of the OECD Centre for Tax Policy and Administration, about the state of play on the implementation of the OECD/G20 Inclusive Framework agreement on a two-pillar global tax reform.

The December 2022 Council agreement on a minimum level of taxation for largest corporations was a major breakthrough to limit the worldwide race to the bottom in corporate tax rates, placing the EU as a front-runner in the application of the OECD/G20 agreement on Pillar 2. Other countries such as Japan, Korea, the UK and Switzerland are also moving, while in the United States the adoption of the necessary changes is unclear.

Progress regarding Pillar 1 seems less certain and it is unclear if a critical mass of countries will be reached. If OECD's Pillar 1 negotiations don't advance by the end of 2023, the European Parliament already requested the Commission to submit a legislative proposal for a digital levy or a similar measure.

In this context, the discussion with the Deputy Director of the OECD Centre for Tax Policy and Administration gave FISC Members the opportunity to discuss the state of play of the implementation of the two-pillar tax reform and the challenges ahead.

Location : European Parliament, SPAAK 4B01, Brussels

Directive on minimum taxation of multinationals in Europe
EP Resolution on the system of own resources of the European Union
Webstreaming (recording)

Highlights - Public hearing on “Case studies on member states national tax policies - Germany" - Subcommittee on Tax Matters

Wed, 22 Mar 2023 15:47:18 GMT

On 28 March 2023, from 16:00 to 17:30, the FISC Subcommittee will host a public hearing on “Case studies on member states national tax policies - Germany: implemented national tax reforms and the combat against aggressive tax schemes”

The following experts have been invited:

Dr. Daniel Fehling, Head of Division, International Tax Policies - Direct Taxation, Germany's Federal Ministry of Finance;

Prof. Dr. Reinald Koch, Professor for "Business Administration and Business Taxation" at the Catholic University of Eichstaett-Ingolstadt;

Ms Bettina Rodenberg, Head of Global Tax & Trade Group, Henkel AG & Co.

Public hearing on “Case studies on member states national tax policies - Germany: implemented national tax reforms and the combat against aggressive tax schemes”

Newsletters - FISC Newsletters - Subcommittee on Tax Matters

Wed, 22 Mar 2023 13:01:36 GMT

Issue 7 - March 2023