EU Proposes One Set of Tax Rules to Crack down on Loopholes

Big multinational companies would have to calculate their tax liabilities according to one set of rules across the European Union under proposals made by the European Commission on Tuesday aimed at cracking down on companies taking advantage of different national rules by shifting profits to avoid taxes.

To close this loophole the European Commission has proposed a mandatory common tax base for multinationals with total group revenues exceeding 750 million euros ($816 million) a year.

“We are proposing a system which can simultaneously support business, attract investors, promote growth and stop large-scale tax avoidance,” EU Economic and Financial Affairs Commissioner Pierre Moscovici said.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza