The European Commission has published a Communication which outlines the most serious tax problems that EU citizens face in cross-border situations and announces plans for solutions.
According to a press release, issued on Monday, the Communication announces plans in some areas such as cross-border income, inheritance taxes, dividend taxes, car registration taxes and e-Commerce. The Communication also aims to see where further action could be taken, at both EU and national level, to make member states' tax systems more compatible so that citizens will not be deterred from engaging in cross-border activities.
Algirdas Semeta, Commissioner for Taxation, Customs, Anti-fraud and Audit, said that ''taxation has a crucial role to play in strengthening the Internal Market and re-building a strong and sustainable European economy. Good tax policies can promote employment, investment and growth. Today's Communication is another step forward in overturning tax obstacles and promoting fair taxation within the EU, so that citizens can enjoy all the benefits that the Single Market has to offer'', he added.
The Commission intends to step up its activities to help make member states' tax systems more compatible, and to propose concrete measures to prevent or remove tax problems for EU citizens.
The Communication sets out a number of initiatives in this field, which include: Firstly, a Communication on Double Taxation in 2011, examining the extent and gravity of this problem across the EU, followed by legislative proposals in 2012, proposing solutions.
Secondly, proposals in mid-2011 to address cross-border inheritance tax problems. In addition, measures to resolve the double taxation that can arise when a car that is first registered in one member state is then moved to and re-registered in another member state. Moreover, extension of a ''one-stop-shop'' system for e-Commerce, in order to make reporting obligations for businesses much simpler and easier for them to offer goods and services online to foreign consumers.
Proposals in 2012 to solve problems related to the taxation of cross-border dividend payments constitute another initiative to be taken by the Commission.
In addition, the Commission intends to promote a wide dialogue amongst national authorities and stakeholders to see what else could be done to simplify tax measures to the benefit of citizens and the Internal Market.
