EU to take action against corporate tax abuse

The European Commission on Wednesday said a new EU approach to corporate taxation is needed to successfully address tax abuse after an orientation debate between the college of commissioners.

The college agreed to take a more comprehensive approach to improve corporate taxation in the EU, also taking into account ongoing international reforms in this field.

"We want corporate taxation to be fair and growth-friendly. Every company, big or small, must pay its share of tax at the place where it makes its profits. Corporate taxation is a member state responsibility, but the EU must set a clear and renewed framework for fair and competitive corporate taxation," Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue, said in a statement.

European Commission President Jean-Claude Juncker has made the fight against tax evasion and avoidance a top political priority of this Commission. The key objective is to ensure that companies are taxed where their profits are generated and cannot avoid paying their fair share of tax through aggressive tax planning.