The European Commission presented new plans to tackle corporate tax avoidance and harmful tax competition on Wednesday (18 March).
The so-called Tax Transparency Package will force the EU’s 28 member states to share details of any tax deals agreed to with some of the world’s biggest multinationals. The plan aims to end the secrecy that allowed member states to often compete against each other to attract business and investment.
EU Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici said that “by ensuring more openness between member states, more cooperation between tax administrations, today’s proposal will radically improve transparency on tax rulings compared to the situation that we face today”.
“Unlike the current provisions for tax rulings which clearly are not sufficient there will be no escape clause, no room for interpretation on these requirements,” Moscovici added.