FISC discusses impact of new technologies on the tax system
EP’s FISC Committee met on 25 April to discuss an own-initiative report on the impact of new technologies on taxation: crypto and blockchain. All of the political Groups’ representatives that took the floor were of the view that the draft report presents a good basis for future work, giving a strong positive signal for the file.
The draft report was prepared by MEP Lidia Pereira (EPP/Portugal), and among other matters, it calls for an international approach for the taxation of crypto-assets. A vote in Committee is scheduled for 30 June, followed by a Plenary vote on 12 September.
Although legally non-binding, the Parliament’s draft report may influence EC’s thinking when drafting its legislative proposals on related topics. One such example is the expected Directive on administrative cooperation (DAC 8) addressing reporting and exchange of information on crypto-assets, expected for September.
EP adopts position on minimum taxation Directive
The EP’s Committee on Economic and Monetary Affairs (ECON)adopted on 28 April MEP Aurore Lalucq’s (S&D/France) draft report on the EU minimum tax Directive, by 46 votes in favour, 4 votes against and 7 abstentions.
It follows closely the key elements of the Commission proposal, notably the implementation timeline. It contains some differences too, such as the introduction of a review clause that provides for the revision of the annual revenue threshold above which a multinational corporation would be subject to the minimum tax rate. MEP Lalucq would have preferred a higher tax rate (21%) than the one in the Organisation for Economic Co-operation and Development (OECD) agreement (15%), but had to concede on this point.
The final vote in Plenary is currently scheduled for 6 June.
EP approves extension of optional RCM
The EP adopted, without amendments, its report on the Common system of value added tax (VAT): extension of the application period of the optional reverse charge mechanism (RCM) in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud.
The report was adopted with 605 votes in favour, 2 against and 27 abstentions. It was led by MEP Markus Ferber (EPP/Germany). Read more
FISC hearing on use of EU tax regimes by Russian oligarchs
The hearing, which took place on 10 May, aimed to shed light on the features of special tax regimes in the EU and how high-net-worth Russian individuals and oligarchs use them.
Theresa Neef, a researcher from the EU Tax Observatory, called for a European register that would detail assets held throughout the EU and centralise the information. All types of assets should be covered, as well as all legal forms, such as trusts or foundations, and real estate, she argued.
Richard Murphy, Professor of Accounting at the University of Sheffield, argued that the EU still has secrecy jurisdictions and that too little attention is paid on the role of intermediaries.
Susana Peralta, Associate Professor at Nova University in Portugal, presented specificities of the Portuguese tax system such as golden visas, citizenship for Sephardic Jews and non-taxation of crypto-assets. Read more