Business favours "common" tax framework

News Article - 25 September 2007
Category: Regulatory

Europe's largest organisations would be in favour of a "harmonised" European corporate tax system, according to new research.

Accountancy firm KPMG reports that 78 per cent of finance directors, tax directors and tax managers from more than 400 companies in the European Union and Switzerland would welcome such a framework.

The European commission is planning a Common Consolidated Corporate Tax Base that would see multi-national firms calculate their profits using a single European formula, the company said.

Sue Bonney, head of tax for KPMG in Europe, the Middle East and Africa, said: "Business is sending a message to policymakers that they are prepared to trade choice for certainty, provided this does not result in higher tax rates and more compliance costs."

In related news, the Office for National Statistics recently reported that the number of VAT-based enterprises in the UK increased by 1.7 per cent between 2006 and 2007.

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