European Commission work programme 2022 includes tax projects

By Doug Connolly, MNE Tax

The European Commission will work to ensure “swift and consistent” implementation within the EU of the two-pillar global tax agreement to show “EU’s leadership in global tax fairness,” according to its work programme 2022 released October 19.

Accordingly, the Commission lists in its work programme report to the European Parliament and Council a new initiative for a proposal to implement the OECD Inclusive Framework agreement. The Commission has previously indicated that it intends to put forth such a proposal in December, assuming timely release of model rules by the OECD.

Although there are no other new tax initiatives in the report, the report further includes a couple of tax projects under the “REFIT” program, which aims to streamline and simplify existing rules. One such program relates to updating customs legislation to improve controls of e-commerce. Another program seeks to modernize the value-added tax rules to take into account opportunities offered by digital technologies.

The report also highlights the Commission’s tax-related energy proposals, released in July, among its “priority pending proposals,” for which the Commission urges legislators to take the swiftest action.

The work programme follows the European Commission President’s state of the union address last month, which emphasized “fair taxation” and tackling tax avoidance.

On the basis of the work programme, the Commission will now work with the European Parliament and Council to establish a joint declaration on the EU’s legislative priorities.