On 27 February, the final report of the European Parliament’s Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance (TAX3) will be voted.

The report presents the findings and recommendations of the rapporteurs following eight months of hearings by the Committee concerning anti-money laundering and aggressive tax planning. In addition, the vote on the final report will be broadcast live and can be viewed via the following link.

In the lead up to the vote on the final report, the TAX3 Committee has held meetings exchanging views with National Parliaments concerning anti-money laundering and taxation of the digital economy, and with Competition Commissioner, Margrethe Vestager, concerning recommendations of TAX3 and Parliament concerning fiscal state aid investigations.

Key recommendations in the report of co-rapporteurs Ludek Niedermayer and Jeppe Kofodare that the Commission and Council adopt a comprehensive definition of aggressive tax planning, as well as a definition of permanent establishment, economic activity requirements and expenditure tests to avoid companies having an artificial taxable presence in a Member State.

The rapporteurs Committee further recommends that EU efforts to fight corporate aggressive tax planning are strengthened, that the BEPS action plan is supplemented, and that Member States’ tax systems are scrutinised. They also calls on the Council to adopt the proposals on CCTB and CCTB as well as the digital tax package proposals.

The Committee calls for a broader scope for the exchange of tax rulings and for broader access by the Commission to those rulings, and guidance concerning what constitutes tax-related State aid and appropriate transfer pricing. The rapporteurs welcome the VAT action plan, but express regret that no safeguards were adopted concerning the Certified Taxable Person proposal.