Responses to the European Commission's public consultation on corporate tax transparency show broad support from financial professionals for extending current requirements.

In a multiple choice question, two-thirds (66.31 per cent) of the respondents said they agreed that “the EU should be in the forefront and possibly go beyond the current initiatives at international level, for example by extending the current requirements to disclose tax information to the public to all other sectors.”

Only 7.8 per cent thought that the EU's current tax transparency requirements are sufficient.

Three-quarters (76.95 per cent) of the respondents agreed that “enterprises should pay tax where they actually make profit”, while 68 per cent also agreed that “EU member states should stop harmful tax competition”.

There was also broad support for several other elements of a more transparent corporate tax environment, including:

• enterprises should structure their investments based on real economic reasons, not just to avoid taxes (supported by 78.72%)
• fairer competition between multinational enterprises and SMEs (supported by 80.14%)
• help tax authorities orientate their audits on enterprises (86.17% agree)

Almost 60 per cent thought that greater tax transparency would “constitute a feature of a growth-friendly environment and foster the attractiveness of the EU as a place to invest”.

Three-quarters of the respondents work in the following fields: accounting, audit, business, investment management, reporting and tax. Three-quarters of the respondents were from the following four countries: the UK, France, Germany and Belgium. Respondents were evenly divided between private individuals and an organisation or company.

The European Commission has received 422 responses to its public consultation on corporate tax transparency. The results of those who agreed to have their replies made publicly available are shared on the Commission's website.

---

CTMFile Take: There seems to be very substantial support for a fairer and more transparent tax environment within the EU. The majority of financial professionals are in favour of moving in this direction – dispelling the common stereotype of corporates that seek to pay less tax. Moreover, most financial professionals believe corporate tax transparency would make the EU more investor-friendly, boosting economic growth.