TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Mega trends require modern tax systems

The TAXUD Director-General discusses the need for modernisation of tax systems as well as international tax reform and proposals for 2023 which replace the Common Consolidated Corporate Tax Base, and the OECD’s Tax Administration Series considers Ireland’s PAYE modernisation.

Director-General for Taxation and Customs Union Thomas Gerassimos spoke at the annual tax conference of the Finland Chamber of Commerce on 22 September. He discussed mega trends happening across the globe including population ageing, climate change and globalisation and how these trends require reflections on the modernisation of tax systems. Also discussed was OECD international tax reform measures and the new Business in Europe: Framework for Income Taxation (BEFIT) proposal that replaces the Common Consolidated Corporate Tax Base (CCCTB).

OECD international tax reform

When discussing the OECD international tax reform, the Director-General outlined that “there is significant political opportunity and economic need to move now. We must rally the remaining jurisdictions that have not joined the agreement yet – which includes a couple of EU Member States – and ensure an effective worldwide implementation plan.”

He also stated that “following the agreement on a global solution, the Commission will act swiftly to ensure its effective implementation in the EU. The Commission will immediately propose a Directive for the implementation of Pillar Two in the EU. This is a necessary step, to ensure that Pillar Two is transposed in the EU in a uniform fashion and with the legal certainty that the new rules are compatible with the acquis. The Commission will also be ready to act if a Directive is needed for the implementation of Pillar 1 after an agreement is achieved.”

New Business in Europe: Framework for Income Taxation BEFIT proposal

In 2023, as announced in the Communication on Business Taxation for the 21st century, the Commission will put forward a proposal for a holistic EU business tax framework – The Business in Europe: Framework for Income Taxation (BEFIT).

It will provide a single corporate tax rulebook for the EU, based on a common tax base and a formulary apportionment, building in its key principles on OECD deal.

The new BEFIT proposal will replace the pending CCCTB proposal and will build on progress in the on-going global discussions on international corporate tax reform.