This article was first published in Le Temps, 12 September 2015
The finance ministers of Twenty-Eight (Ecofin) opened a new site for business taxation. At an informal meeting in Luxembourg on Friday, they studied ‘effective minimum taxation’ applicable in all EU countries. The idea is to charge multinationals at least some of the taxes where they make profits.
Keith O’Donnell is not opposed to the idea of minimum taxation. “Customers complain less of the tax burden and the complexity and lack of transparency of tax systems in the European states,” he said. He also recalls the difficulty of imposing companies in one country while certain activities, such as e-commerce, involve several jurisdictions.
Multinationals operating in the EU should take note of all developments in this field.