EU Advocacy » Y 2000 Declaration » Taxation
Millennium Declaration:
Our vision on TAXATION
The burden of taxation should always be kept to the minimum. Every business, whether a sole trader, partnership or incorporated, should be treated fairly and proportionately.
The principles on which any taxation should be based are: -
- Simplicity
- The body imposing the tax should be as close as possible to the taxpayers and only be applied by consensus through representation.
- Competition between tax raising authorities should be permitted to a certain extent to keep taxation as low as possible.
- Accountability and responsibility.
- Cost effectiveness.
Learning from the past
Taxation is necessary to serve the common needs of citizens, which cannot be served better by the free market. However the current Taxation system is not fair and is against the common interest.
Taxing authorities have developed a policy of selective grants and subsidies, which have created an un-level playing field for business.
Public debates about taxation have failed to address the following issues:
- The whole taxation system is too complex. It results in unfair treatment of small businesses
- The taxation system is selective : Large multinational companies have negotiation powers with tax authorities that small businesses do not have
- Consistent public consultations on taxation are not organised. Only internal administrative consultations or the lobbying of large businesses have an influence on the tax regime
- The present tax regimes in Europe give greater incentives to small entrepreneurs to invest his money elsewhere than in its own business.
Key policy recommendations for the future
- Increase tax incentives within EU member states for small entrepreneurs, in particular, for the unincorporated businesses, to retain profits to fund future growth.
- The equal treatment of personally invested capital on a par with debt capital.
- Establish independent tax committees within EU member states composed of representatives of business organizations to analyse and propose simplification measures of the taxation system.
- At EU level call for a policy of fair tax competition between Member States as a means to reduce and simplify taxation
- Call for great transparency in any taxation debates
Page last updated: 11/01/2007 4:49:48 PM