On April 23, 2013, the European Union announced the formation of The Platform of Good Tax Governance. The Platform is composed of both government and non- government tax experts to keep member states on their toes and up-to-date on the current political momentum to prevent tax base erosion.
The Platform is designed to foster discussion of various principals, such as a common definition of a tax haven, and aggressive tax planning techniques employed by companies within their jurisdictions. In addition, the EU proposed numerous recommendations to further reduce aggressive tax planning, including enforcement of current anti-abuse provisions in current tax treaties.
Coupled with the increased number of Tax Information Exchange Agreements that go beyond existing treaties, companies need to insure that all of their activities are properly documented and supported by sound business reasoning. And as we all know, reducing one’s tax burden is not a valid business reason acceptable to tax authorities.
For more information on European tax issues, join us for a webcast on Wednesday, May 22 that will focus on transfer pricing developments in Europe. You can