Companies call for easier tax plan

Date: 05/04/01

By Laurence Frost

BUSINESS leaders are calling on the European Commission to come up with a single streamlined tax regime for a new generation of pan-European firms.

Companies want to see the measures included in an action plan on company tax to be published next month, following the agreement on a new European Company Statute at December's Nice summit.

Commissioner Frits Bolkestein's tax action plan is expected to tackle the obstacles still faced by cross-border firms, including double taxation, that hinder financial flows as well as mergers, acquisitions and joint ventures.

Employers' organisation UNICE wants the measures to go further, with firms getting a single tax bill offsetting profits and losses incurred in different member states.

Such a move could be seen as consistent with the Commission's new emphasis on company tax and VAT reforms, after heads of state in Nice refused to accept qualified majority voting on tax, amid fears it would lead to widespread rate harmonisation.

Daniela Israelachwili of UNICE said: "We need a system that's the same for everyone, but there must be room for member states to set their own rates."

UNICE said it is not optimistic that the Bolkestein plan will meet its demands, since most governments have yet to be convinced.

The Commission said it has yet to decide on the issue.

Business leaders are calling on the European Commission to come up with a single streamlined tax regime for a new generation of pan-European firms.