Common cross-border tax base ‘in five years’

Report of an interview with Laszlo Kovacs, EU Tax Commissioner. He said that European companies could be operating across EU borders using a common tax base within five years. Experts are making headway on the ambitious project, which aims to cut the complexity and cost to business of complying with different tax systems. Mr Kovacs said that he hoped to be ready with a legislative proposal in early 2008 and that it could come into force as early as 2011 if member states give it full backing. Certain countries such as Ireland, United Kingdom, Estonia and Slovakia might opt of the scheme so the scheme might move forward under the 'enhanced cooperation' procedure.