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European Commission to fight tax fraud, evasion with new tax plan

The European Commission wants to step up its fight against tax evasion in the European Union's digital world, the EU's executive arm said on Wednesday.

Brussels, 15 July 2020 (dpa/MIA) – The European Commission wants to step up its fight against tax evasion in the European Union’s digital world, the EU’s executive arm said on Wednesday.

One proposal foresees the extension of EU tax transparency rules to digital platforms, such as Amazon.

The proposal, which would need to signed off by member states, would see EU countries automatically exchange information on the income made by sellers on online platforms.

“Everyone has to pay their fair share of taxes,” said the commission’s vice commissioner, Valdis Dombrovskis.

Tax evasion led to a revenue loss of 46 billion euros (53 billion dollars) in the EU in 2016, according to the commission.

Digital platforms would have to report tax-relevant information in one EU member state once a year, according to the plan.

As part of a “tax action plan”, also launched on Wednesday, the commission presented 25 initiatives to simplify the EU countries’ tax systems.

These include technical measures to reduce obstacles for businesses to pay tax and a proposal to simplify value added tax rules.

The EU’s executive arm has limited powers in the field of tax policy, which is mainly in the hands of the bloc’s member states.

The commission also wants to update its “black list” of countries it deems non-cooperative.

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