As part of the government’s Balance of Competences Review – a two year project to analyse and examine the UK’s relationship with the European Union – HM Treasury has published a report considering what EU membership means for the UK and taxation.
The report aims to examine the balance of competence between the UK and EU and to provide an analysis of what the UK’s membership of the EU means for the UK national interest.
It reflects responses to a Treasury call for evidence, as well as the results of a series of discussions with interested parties. Respondents included representatives from banking, legal, charity and cultural sectors, as well as from academia.
The report states that work is ongoing in the OECD to address profit shifting by multi-national companies and erosion of the corporate tax base and the OECD will be presenting a comprehensive action plan for tackling these issues to the G20 in July 2013.
The report on taxation published today reflects the evidence received and discussions with interested parties including:
the level at which decisions on taxation should be made
the impact of the current balance of competence on the national interest
future challenges the UK may face in relation to the balance of competence on tax
In general, respondents and interested parties said that they are satisfied with the current balance of competence on taxation, taking account of the protections offered by unanimity voting. While individual respondents suggested areas where existing measures could be updated to reflect modern business practice, none identified any major gaps in the existing legislation.
The Balance of Competences Report on taxation is one of six reports published. These reports cover the single market (an overview), health, development co-operation and humanitarian aid, foreign policy, animal health and welfare and food safety, as well as taxation.
For more information on the review of the balance of competences visit the webpage, or join in the conversation on Twitter using the hashtag #BOCReview.