In a report published in April 2021 , the Finance, General Economy and Budgetary Control Committee of the National Assembly reviews the fight against corporate tax evasion and takes stock of the recommendations presented in a report in September 2018 by the parliamentary fact- finding mission on tax evasion by large companies.
The report is part of the negotiations within the OECD(new window)which could result in the course of 2021 and the implementation by the European Union of fiscal measures concerning digital activities(new window).
Recommendations and negotiations
The parliamentary fact-finding mission on tax evasion by large companies made 38 recommendations in its September 2018 report, 17 of which fell wholly or partly within the competence of Parliament as a legislator. Three of the four recommendations have been implemented.
The April 2021 report underlines the need to place the implementation of these recommendations in the context of the negotiations currently taking place at the OECD. The OECD reform revolves around two “pillars”:
- Pillar 1: recognition of the right to tax for certain tax jurisdictions and the rules for the distribution of profits;
- Pillar 2: minimum taxation at the global level of the profits of multinational groups.
The report stresses that the second pillar would be an instrument in the fight against tax havens by reducing the interest in relocating company profits to avoid tax. It would complement European advances in the debate on the list of non-cooperative states and territories.(new window) (ETNC).
At the same time, the European Commission plans to put in place a tax system affecting digital companies(new window) through a “digital direct debit”.