EU Anti-Avoidance Moves Concentrate US Minds
It would be somewhat remiss not to mention the latest battery of anti-corporate tax avoidance proposals from the European Commission, especially as they represent probably the most serious attempt by Brussels so far to harmonize corporate tax in the EU. Indeed, even the most europhile member states in the heart of “old Europe” (France, Germany, Benelux et al) must have been taken by surprise by the ferocity of the Commission’s recent attacks on member states’ tax regimes. But, rather than do the predictable thing of chastening Brussels for its latest power grab over the tax sovereignty of European nations, it is possible look at this from a different angle. If there’s one good thing to come out of the EU’s aggressive stance on tax avoidance, it’s that minds are beginning to focus on tax reform on the other side of the Atlantic. Last month, we saw a bipartisan quartet of Senate Finance Committee members urging Treasury Secretary Lew to confront the EU over its state aid investigations, which involve some US multinationals. And more recently, House tax writers emphasized the need for US international tax reform in response to the European Commission’s anti-tax avoidance package.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look