EUROPE: Impact on tax policy of post-Brexit UK discussed in detail by MEPs.

As published on europeaninterest.eu, Tuesday 26 January, 2021.

MEPs on Tuesday discussed in detail with experts and the European Commission the implications of Brexit on taxation in the EU and globally.

The two hearings, the first with members of the Commission task force for relations with the UK, and the second with a panel of experts and NGOs, shed light on how to deal with a UK which could deviate further from the EU on taxation issues, undermining member states’ efforts in tackling tax evasion and diminishing the competitiveness of EU businesses.

MEPs were particularly interested in how the EU could develop safeguards both to directly counter any practices the UK or its overseas territories could take which had a negative impact on tax evasion and to minimise the effects of tax policies which would put EU businesses and their EU financial products at a competitive disadvantage. Discussions also revolved around VAT rules, the possibility for an EU minimum corporate tax rates, the UK overseas territories and crown dependencies, anti-money laundering, and country by country reporting, among others. Finally MEPs also discussed with the experts the impact of Brexit on the more global efforts in taxation through the OECD, including on taxation of digital services.