EU Commissioner Olli Rehn calls for unified EU tax policy

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

EU Commissioner Olli Rehn calls for unified EU tax policy

olli-rehn.jpg

Olli Rehn, European Union Economic and Monetary Affairs Commissioner, has called for greater harmonisation in EU taxation policy.

Rehn, in a televised interview with Yle TV1 on Saturday, praised Finland’s move to cut its corporate tax rate by four and a half percentage points to 20%, and suggested the EU should try to adopt a unified policy when it comes to taxation.

Finland was the only national economy in Europe to shift from surplus to deficit over the past few years, and Rehn believes the company tax cut will provide a boost to the country’s competitiveness.

“It is vital to foster the competitiveness of companies and thus the conditions of economic growth and employment in all European countries. This is a challenge in particular for Finland, because it is the only so-called surplus economy in Europe, which over the past few years has transformed into a deficit economy,” said Rehn.

Rehn renewed his calls for a unified EU tax policy, having previously said the abolition of tax havens will require greater harmonisation of taxation within the EU.

But efforts to achieve greater harmonisation have invariably failed to overcome obstacles such as feared loss of sovereignty. The common consolidated corporate tax base (CCCTB) and financial transaction tax (FTT) are examples of this, though the FTT is now being advanced by 11 member states under enhanced cooperation.

And Frederic Donnedieu de Vabres, chairman of Taxand, has identified national competition for investment (such as Finland’s corporate tax cut) as another hurdle for harmonisation.

However, the existence of obstacles has not curbed the appetite for harmonisation, particularly among certain EU countries such as France and Germany. The two nations have proposed a number of ideas for further convergence of tax policy.

The most recent incarnation of this drive sees France stepping up its efforts to increase European harmonisation and tackle tax evasion by reinforcing the exchange of banking information across the continent. Pierre Moscovici, the French Finance Minister, has proposed a European version of the US Foreign Account Tax Compliance Act (FATCA).

“I propose that there be an automatic exchange of information; a European FATCA,” Moscovici told Europe 1 radio.

Moscovici also said on Sunday that France would be putting forward a proposal regarding money laundering. No further details were provided, but the proposal will again be delivered in conjunction with Germany.

These developments will tie in with proposals from the European Commission, which launched a consultation on the formation of a European Taxpayer’s Code last month as part of its December Action Plan.

“This is part of the [Commission’s] Action Plan, which seeks to increase cooperation, trust and confidence both between and among administrations, and between administrations and taxpayers. The EU is embarking on this and promoting automatic information exchange as a standard,” said Bob van der Made, of PwC.

more across site & shared bottom lb ros

More from across our site

AI-powered tax agents are likely to be the next big development in tax technology, says Russell Gammon of Tax Systems
FTI Consulting’s EMEA head of employment tax and reward tells ITR about celebrating diversity in the profession, his love of musicals, and what makes tax cool
Canadian Prime Minister Mark Carney and US President Donald Trump have agreed that the countries will look to conclude a deal by July 21, 2025
The firm’s lack of transparency regarding its tax leaks scandal should see the ban extended beyond June 30, senators Deborah O’Neill and Barbara Pocock tell ITR
Despite posing significant administrative hurdles, digital services taxes remain ‘the best way forward’ for emerging economies, says Neil Kelley, COO of Ascoria
A ‘joint understanding’ among G7 countries that ‘defends American interests’ is set to be announced, Scott Bessent claimed
The ‘big four’ firm’s inaugural annual report unveiled a sharp drop in profits for 2024; in other news, Baker McKenzie and Perkins Coie expanded their US tax benches
Representatives from the two countries focused on TP as they met this week to evaluate progress under a previously signed agreement – it is understood
The UK accountancy firm’s transfer pricing lead tells ITR about his expat lifestyle, taking risks, and what makes tax cool
Dolphin Drilling intends to discuss the final liability amount and manner of settlement with HM Revenue and Customs
Gift this article