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Future of tax in Europe
The European Federation of Accountants (Fédération des Experts Comptables Européens), has held a debate which tackled the main issues on European Union company taxation. The aim of the event was to discuss the tax obstacles to cross-border economic activity in the internal market. The main conclusions follow.
Future of tax in Europe
The European Federation of Accountants (Fédération des Experts Comptables Européens), has held a debate which tackled the main issues on European Union company taxation. The aim of the event was to discuss the tax obstacles to cross-border economic activity in the internal market. The main conclusions follow.
The creation of European tax accounting standards would identify best practice in the taxation of business entities and form guidelines under which Member State taxation laws, in key areas, could converge.
If the European company is to be a success, the taxation strategy must ensure that taxation costs for transferring an existing company are tax neutral at both corporate and shareholder level. There is a need for consolidated cross-border loss relief.
The compliance burden for small and medium sized enterprises must be reduced. A system could be developed which allowed the enterprise to apply home state taxation rules to cross-border activity, possibly with only home state tax being applied to the total European Union profit.
Finally, it was evident that the European Court of Justice was increasingly influential in the application of domestic taxation rules, and was a positive driver of convergence of European tax systems.
(Source: Fédération des Experts Comptables Européens press release dated 16 October 2002.)
In the dark?
Barnett Waddingham has produced a useful wallchart on small self-administered schemes and self-invested personal pensions. This highlights the similarities and differences between the two types of pensions arrangements. Readers who would like to receive this wallchart should contact Helen Rossiter on 01494 788100.
