The coronavirus crisis has led to a general reassessment of the European Commission’s annual work program, but the commission is not planning to delay its tax-related projects for 2020.
According to an internal planning document obtained by Tax Notes, the EU executive is screening all planned legal projects to determine which will be pushed back. But the action plans on fighting tax evasion and business taxation for the 21st century are still scheduled for the second quarter. Both are "strategic priorities," the document says.
The plan on tax evasion, which will be accompanied by legal proposals, will highlight the next steps in the simplification of taxation.
The plan on business taxation has been widely anticipated by accountants and lobbyists because it is expected to take stock of the OECD’s base erosion and profit-shifting discussion, and decide the next steps for the EU, including taxation of the digital sector. "This is particularly relevant for the (post-COVID) recovery phase, during which Member States will need to broaden their tax bases to finance the growing deficits," the document says.
The action plan on money laundering is also a priority because it is "close to finalization," according to the document. Exact timing is nevertheless unclear: It was initially expected during the first quarter, but slipped until May in the latest version of the College of Commissioners agenda.
The review of the nonfinancial reporting directive is still planned for near year-end, even though the public consultation has been extended until June 11 — meaning it will be pushed back by at least a few weeks.
Finally, the action plan on customs union and a proposal on a customs single window, initially expected by June and October, respectively, have been delayed until the end of the year. "These matters will remain important in the recovery phase, to help international trade re-start but also ensure that the Single Market is protected against unfair practices from abroad," the document says.