In its recent Communication on Business Taxation for the 21st Century, the Commission has put forward proposals for fighting aggressive tax planning. The Commission committed to table a legislative proposal to address aggressive tax planning opportunities linked to the use of shell companies and to make a legislative proposal for the publication of effective tax rates paid by large companies.
The JRC supports the efforts to address aggressive tax planning behaviour and profit shifting to uncooperative and low-tax jurisdictions. Using the general equilibrium model CORTAX, the JRC has investigated a variety of policy reforms that ensure effective taxation of outbound passive payments, including interest and royalty payments.
JRC has also estimated tax revenue losses related to Base Erosion and Profit shifting (BEPS) and provided the first assessment of its macroeconomic effects, using the CORTAX model.