Ahead of the European Commission Anti-fraud tax package, CFE Tax Advisers Europe and Accountancy Europe, leading European associations for tax professionals, highlight three areas for policymakers in which the current tax system could be improved whilst longer term reforms are being developed. Policymakers, taxpayers, and tax professionals need to work together to make tax systems more resilient and fit for purpose for the 21st century.
The Joint Statement has set out four key messages to the EU and other relevant stakeholders:
- Member States should co-operate with the help of the European Commission to develop effective co-operative compliance programmes suitable for all sizes and types of businesses and that facilitate cross-border trade and reduce the possibilities for double taxation. We call on the European Commission to encourage and enable exchanging best practices on co-operative compliance in Europe, and to issue recommendations for co-operative compliance fit for SMEs.
- Cooperative compliance programmes should be subject to transparency of tax administrations and respect of taxpayers’ rights, as set out in national and international / EU law.
- Businesses should consider the advantages that voluntary public tax transparency – as an integral part of their sustainability policies – could bring to their business and its relationship with tax authorities and other stakeholders. The European Commission should monitor and assess the effectiveness of voluntary tax transparency initiatives.
- Businesses and tax authorities should invest in the latest IT solutions to improve the quality of data, communication, and remote access to services. We look forward to the European Commission’s initiatives aiming to promote IT solutions in tax administrations and stand ready to help.
Full details concerning the joint statement can be found here.
Ref.: The Office Team at CFE Tax Advisers Europe