While welcoming the adoption of the negotiating mandate on the amendments to the Savings Taxation agreements with third countries and the adoption of Council conclusions on tax evasion and fraud, ACCA now calls on EU leaders to further engage in the way proposed by the European Commission, the G7, the G8 and G20, as well as the OECD in its work on base erosion and profit shifting.
To accompany the much needed fiscal consolidation exercise across the EU currently being put in place, the global accountancy body fully endorses the importance of better coordination of taxation matters at national, EU and international level.
Chas Roy-Chowdhury, head of taxation at ACCA explains: 'Within a globalised economy, those seeking to reduce or mitigate their tax liability can take advantage of national disparities and regulations.
'Unilateral solutions adopted by individual countries alone are likely to prove less effective and difficult to implement than joined-up action. Member states working together in a coordinated way, taking advantage of all the measures available to them under EU law, have better chances in succeeding to create a satisfactory solution to resolving the issue.'
'The potential that already exists, by way of legislation, to improve transparency, automatic exchange of information and administrative cooperation, as well as coordinated actions recommended to Member States on aggressive tax planning, tax havens and abusive tax planning, has still not been fully exploited,' Chas Roy-Chowdhury adds.
'We now look forward to the decisive EU summit that will take place on 22 May and hope for a bold move. The objective that EU leaders should pursue is threefold: first, to restore the credibility and robustness of EU Member States' tax systems, second, to protect the ability of member states to effectively raise projected public revenues and to carry out their economic policy, and third, to promote high standards of tax governance globally,' Chas Roy-Chowdhury concludes.