Digital tax matters were on the table for the European Commission, which has published an economic recovery plan (as part of its response to the coronavirus pandemic), which includes a possible digital tax, a crackdown on tax fraud, in addition to revisiting its proposals for a common consolidated corporate tax base.
The Commission intends to borrow EUR750bn on the financial markets to fund the package. To repay these funds, the Commission will propose a number of new “own resources.”
According to the EC plan, options for reform could include a new digital tax on companies with global annual turnover over EUR750bn, which could raise an estimated EUR1.3bn per year, and a Carbon Border Adjustment Mechanism, which could take the form of a tax on imports to the European Union that do not face environmental levies equal to the EU’s in their country … Read More »
Finland has been looking broadly at measures to increase the country’s tax take post-COVID, and at ways to increase compliance in a number of areas.
Earlier this month, for example, the Finnish Government published a report which explores the economic and fiscal consequences of the COVID-19 pandemic for Finland and considers what taxes could be increased to help restore the public finances.
The report observes that Finland already has one of the highest tax burdens in the world, especially on labor. Therefore, raising taxation poses the risk of damaging Finland’s competitiveness, it warns, but goes on to identify certain tax areas in which there is scope for revenue increases without threatening the economy.
These, according to the report, are: property taxes (which tend not to be economically distortive and affect largely wealthier taxpayers); corporate tax (where there is scope available to reduce the … Read More »
The Netherlands has unveiled proposals for wide-ranging reforms to the country’s tax system. Presenting ‘Building Blocks for a Better Tax System’ in a Parliamentary letter submitted to the House of Representatives on May 18, State Secretary for Finance Hans Vijlbrief unveiled plans to improve and “future-proof” the country’s tax system.
The report is based on the results of 11 investigations into seven “bottlenecks” in the tax regime which lead to unfavorable outcomes. It suggests 169 “building blocks” that political parties could use in future to rebuild the tax system.
According to the Government, the seven bottlenecks include:
A rising tax burden on labor;
Ineffective taxation of the platform and gig economy;
Inconsistent taxation of capital, with some forms of capital income taxed more lightly than others;
Inadequate taxation of profits;
Insufficent “pricing” of pollution through taxation; and
The declining effectiveness of national taxation.
Policy options detailed in the … Read More »