At the end of 2016 the European Commission decided to re-launch its proposal for a Common Consolidated Corporate Tax Base (3CTB). As you may know, the attempt made in 2011 failed to gather sufficient support amongst European Member States, but the circumstances appear to have changed since then.
The Lux Leaks and the Panama Papers contributed to the momentum for tax reform, putting the European Commission’s proposal to harmonize corporate taxation in a different perspective in comparison with a few years back. These scandals have helped raise awareness about companies’ use of mechanisms such as letterbox companies to separate their obligations to stakeholders and society from the location of “real” production. Workers and other stakeholders share an interest in strengthening the link between “real” production and the obligations of companies, not only in the interests of tax justice but also in the interests of protecting workers’ rights, worker participation in company governance, social standards, and discouraging “regime shopping” in general.
The dossier is in the hands of the European Council, which means in the hands of the Member States, which on this matter must decide by unanimity. The European Parliament only has an advisory role in the procedure, but the S&D Group, under the initiative and leadership of Paul Tang, the rapporteur of the EP opinion, is committed to play a substantial role in advising for improving the current proposal and defining a strategy which can result in a successful political compromise.
FEPS and ETUI are also committed to create awareness and contribute to the debate on how to better harmonise corporate tax in Europe and plan to organise a major international conference in January.
To kick off the work on this dossier, we are organising an experts’ meeting in Brussels on September 6, in which we hope you can take an active part and contribute.
The possibility to move forward with a Common Consolidated Corporate Tax Base (3CTB) is once again on the table. The European Council is likely to take action on the matter in 2018 and the European Parliament is now asked to draft its opinion on the Commission’s proposal.
The S&D Group, under the initiative of MEP Paul Tang who is rapporteur of the EP’s Opinion on the 3CTB, together with FEPS and the ETUI are interested in gathering expertise from academia, trade unions, civil society organizations and other interested parties to substantiate a progressive position, get input on technical and legal matters, and promote an open discussion on the key features of a potential European reform of corporate taxation which would also represent a step towards a more social Europe.