Monday 22 May 2017

Big multinationals to calculate European taxes using single rule book under new proposals

Pierre Moscovici
Pierre Moscovici
Donal O'Donovan

Donal O'Donovan

Big multinationals will have to calculate their European taxes using a single rule book, under European Commission proposals unveiled on Tuesday.

The plans are aimed at stopping corporations taking advantage of different tax rules across the 28 members of the EU. The Commission plan is for a so called mandatory common tax base for corporations with turnover greater than €750m a year.

"We are proposing a system which can simultaneously support business, attract investors, promote growth and stop large-scale tax avoidance," EU Economic and Financial Affairs Commissioner Pierre Moscovici said.

The Commission claims the tax plan could boost the EU economy by up to 1.2pc, including saving companies money and cutting down on so called tax avoidance. 

But, the plan faces opposition from member states including Ireland that see tax setting as a solely national issue.

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