CFE Tax Top 5 (17 August 2020)

This week’s edition of the CFE Tax Top 5 looks at the following:

Save the Date: CFE Professional Affairs Webinar Conference on Taxpayers Rights

Save the date for the 13th European Webinar Conference on Tax Advisers’ Professional Affairs, to be held virtually on Friday, 20 November 2020, on the topic of “Taxpayer Rights and Legal Certainty in the Digital Era”. The webinar conference will welcome tax experts and academics who will examineglobal developments in the protection of taxpayers’ rights and the impact and implications of technology on taxpayers’ rights. The conference will also review the recently published IBFD 2019 Yearbook on Taxpayers’ Rights, the most recent compilation of information by the Observatory on the Protection of Taxpayers’ Rights. More details about the programme, line-up of speakers and registration will be available in due course.

Taxation to Dominate Upcoming EU Agenda

Taxation is reportedly set to dominate the EU agenda in the fall this year, with a letter from the German Finance Minister Olaf Scholz sent to colleagues setting out that “Our primary task will be to implement the recovery package” and to “focus on achieving an effective minimum tax on multinational companies”. The European Commission published its Tax Package for “fair and simple taxation” in July, comprised of a 25-step plan, a proposal for a Council Directive to revise the Directive on Administrative Cooperation to extend EU exchange of information rules to information on income generated by sellers on digital platforms, and a new external tax strategy by way of a Communication on Tax Good Governance in the EU & Beyond. In the fall of 2020 the Commission will publish its plans for business taxation for the 21st century, which will aim to complement the work being undertaken by the OECD on addressing challenges of the digital economy and minimum taxation. A schedule setting out the planned actions and their anticipated delivery dates can be found here. In addition, the European Parliament’s newly established permanent tax subcommitteeto the Committee on Economic and Monetary Affairs will soon begin work. The subcommittee is comprised of 30 members tasked with investigating issues surrounding “tax-related matters, and particularly the fight against tax fraud, tax evasion and tax avoidance, as well as financial transparency for taxation purposes”.

CFE’s EU Tax Policy Report – Semester I 2020

The COVID-19 pandemic conditions that developed in the first six months of 2020 led to extreme public health and economic challenges, shifting the focus of the wider community into contending the impact of COVID-19. The first semester of 2020 has therefore proved to be extraordinary by any standard. In the EU, Croatia, who held its first ever Presidency of the Council of the European Union from 1 January 2020 to 30 June, was successful in managing to achieve progress on multiple taxation files despite the extreme challenges posed by the COVID-19 outbreak. Detailing those developments, CFE Tax Advisers Europe has published its signature EU Tax Policy Report for the first semester of 2020, covering the period of January to June 2020. The report contains analysis of significant primary law and tax policy developments at both EU and international level and an overview of selected case-law of the Court of Justice and relevant European Commission decisions.

UN Committee of Experts Consider Digital Services Tax Treaty Provision

The UN Committee of Experts on International Cooperation on Tax Matters has published session papers ahead of their 21th Session meeting, to be held virtually between 20 October and 6 November 2020.In particular, the Committee of Experts will consider a draft treaty provision concerning tax on digital services, intended to be inserted into the UN Model Tax Convention. The session will also address progress on updating the Model Double Taxation ConventionBetween Developed and Developing Countries, as well as environmental taxation and taxation of the extractive industries. Comments on the session papers can be submitted via e-mail to [email protected].

CFE Opinion Statement on Unharmonized Reporting Obligations in VAT

CFE Tax Advisers Europe has published an Opinion Statement highlighting issues with the lack of harmonization in VAT reporting within the European Union. The VAT system within the European Union should be moving towards a system of increased harmonization to facilitate the single market. However, when it comes to the collection of VAT and accounting obligations, businesses are increasingly being faced by a series of new reporting and payment requirements which are being introduced by Member States on a non-harmonized basis. CFE Tax Advisers Europe views this as an area where measures should be adopted on a more harmonized basis as a matter of urgency and welcomes the European Commission’s proposals to hold a Fiscalis seminar on transaction based VAT reporting and its recognition of the importance of this issue. The CFE believes this issue require consideration on a pan-European basis as soon as possible. We invite you to read the Opinion Statement and remain available to discuss any queries you may have concerning our statement.


source: CFE Tax Advisers Europe