ACCA: Commission proposals ambitious but questionable
By Tanguy Verhoosel | Wednesday 27 June 2012
Are the European Commission’s ambitions realistic? The Association of Chartered Certified Accountants (ACCA) voices its full support for the executive’s determination to improve national tax collection, increase administrative cooperation between states and adopt a coherent strategy towards third countries so that they apply standards equivalent to the EU’s tax governance. However, on 27 June, the ACCA drew the attention of European officials to the “potential difficulties” involved in enforcing certain measures recommended by the Commission.
Chas Roy-Chowdhury, head of taxation matters at ACCA, put out a statement applauding the Commission’s proposal to carry out an impact study on the possible introduction in the EU of a European tax identification number for all taxpayers. But “the difficulty comes from the fact that each country has its own system. This means that any change would require costly modernisation” of existing systems.
Along the same lines, Roy-Chowdhury points out that the Commission’s proposal to establish a minimum level of sanctions at Union level against those trying to dodge their tax obligations “is tempting, but once again hard to apply” due to the diversity of national tax practices.