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.
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