Out-Law News | 19 Jun 2015 | 4:20 pm |
David Gauke, financial secretary to the UK treasury told European parliament representatives that the UK will not adopt the proposed measures, the Guardian said.
German MEP Michael Theurer, a member of a committee looking into how multinationals avoid paying tax in the EU, told The Guardian that Gauke was clear that the UK will insist on tax competition.
"It was really a shock from the minister," Theurer told the Guardian.
CCCTB has been under discussion in the European Union since 2011 according to the Commission website. This week the European Commission said that it will present a new proposal in 2016, broken into smaller, more manageable stages. This proposal will include a mandatory CCCTB for multinational companies, it said.
When the CCCTB was first proposed it was an optional system, with the primary focus on simplifying the tax environment for businesses in the single market, the Commission said. Since then, however, the potential to use CCCTB as an anti-avoidance tool has been more widely recognised, it said.
Business lobby group BusinessEurope said yesterday that it has withdrawn its previous support for the proposed CCCTB, due to changes that make it mandatory for multinational companies, while the Institute of Directors described it as "unhelpful political populism".