ITR Global Tax 50 2022: Paolo Gentiloni
Commissioner for the economy, European Commission
Commissioner Paolo Gentiloni is one of the indispensable tax policymakers in the world. He has overseen the European Commission’s response to COVID-19 and its ambitious work on corporate tax reform.
One of Gentiloni’s key achievements has been developing the Business in Europe Framework for Income Taxation (BEFIT) plan to create an EU-wide corporate tax regime. The plan could see the EU turn away from traditional transfer pricing in favour of a more formulaic tax system.
However, the fate of the BEFIT plan is tied up with the pillar two proposal for a minimum corporate tax rate of 15%. The Commission may be able to build on this minimum rate to further EU integration, but this may be easier said than done.
Before joining the Commission in 2019, Gentiloni had a long career in Italian politics and served as prime minister from 2016 to 2018. In return, the Italian government backed Gentiloni to represent the country at the European Commission.
Going into 2023, Gentiloni can expect a political battle with European leaders over the BEFIT plan to establish a common corporate tax base across the EU. If pillar two is successful, Gentiloni may be able to win this battle.