A Mysterious Study in the Code of Conduct Report 1999 and a Rumoured French Connection | Kluwer International Tax Blog

(…) After all, tax rulings, the main topic of the Transparency package is an administrative practice; it is relevant to know what the various administrative practices are in the member states, as done in the 1999 report that was suppressed and never published.

The Commission Staff Working Document dated 18 March, 2015, SWD(2015) 60 final, shows very clearly in Annex 3, “Legal aspects of practice of tax rulings for companies across members states”,  why a new report on administrative practices is required.

The list and the processes mentioned in the annex hide an enormous difference in procedures. It is relevant to let these be surfaced and shown to all involved: taxpayers, tax authorities, EU citizens and politicians.

Since I’m at it, I would like to raise the following issue: France announced recently a new incentive to give the economy a boost (additional depreciation for one year of 40% above the original cost).

This no doubt will help for companies in France to accelerate their decisions to invest but will also cause companies outside France to reconsider switching their investment to France.

Is this harmful tax or is this an incentive that’s acceptable.

I would like to argue –no doubt like France- that it is an incentive however, I fear that countries suffering from the investment switch to France will challenge the move by the taxpayer and adjust profit allocations between that country and France.

Hence a harmful tax measure for them. This all points to a rapid solution for the EU tax landscape to be reformed in line with the major markets EU companies compete with, US, China, India.

Hence, introduction of a CCCTB; consolidation from the start.

Read further: A Mysterious Study in the Code of Conduct Report 1999 and a Rumoured French Connection by Theo Keijzer

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