Double non-taxation - CIOT comments
The CIOT comments, sent to the European Commission on 28 May 2012, on the public consultation requesting factual examples and possible ways to end double-non-taxation of companies. The contributions and a summary report are also available here.
The Commission is looking at mis-matches using loopholes and argues that double non-taxation may distort the internal market by giving a competitive advantage over companies who are subject to ordinary taxation. The Commission has identified nine specific issues. These are:
- Mismatches of entities
- Mismatches of financial instruments
- Application of double tax conventions leading to double non-taxation
- Transfer pricing and unilateral advance pricing arrangements
- Transactions with associated enterprises in countries with no or extremely low taxation
- Debt financing of tax exempt income
- Different treatment of passive and active income
- Double tax conventions with third countries
- Consultation website: EN
- Consultation paper : (en)
The CIOT's submission, the consultation document and subsequent responses are available here in Adobe (pdf) format.
28 May 2012