Press Release: Businesses reach expectations overall for Black Friday
27 November 2020
Black Friday was still exceptional when compared to the rest of the year and sometimes...
Commission on 25 November moved to clamp down on companies in the European
Union that avoid paying corporate taxes by exploiting differences between
member states' tax regimes.
proposal will close loopholes in existing EU rules that are supposed to ensure
that transfers between companies that are part of a single corporate group but
based in different EU member states are not taxed twice.
companies have used the rules, which date back to 1990 and were last amended in
2003 – together with aggressive tax planning – to avoid paying tax altogether.
One common practice involves setting up a ‘letter-box' company in a member
state with a more favourable tax regime.
involves dressing up dividend payments from a subsidiary to a parent company as
loan repayments, which in several member states are not taxed.
Commission proposal would allow tax authorities to ignore such "artificial
arrangements" and require them to ensure that so-called "hybrid loan"
arrangements are taxed in either the subsidiary or the parent company's home
tax revenues for member states would be "in the magnitude of billions of
euros", said Algirdas Šemeta, the European commissioner for taxation, customs,
statistics, audit and anti-fraud. Companies such as Google, Amazon, Starbucks,
and Apple have courted controversy this year amid allegations that they pay too
little in taxes.
Commission will need to win over all member states to stand a chance of being
adopted, since each one holds a veto over legislation affecting such tax.
The Malta Chamber of SMEs represents over 7,000 members from over 90 different sectors which in their majority are either small or medium sized companies, and such issues like the one we're experiencing right now, it's important to be united. Malta Chamber of SMEs offers a number of different services tailored to its members' individual requirements' and necessities. These range from general services offered to all members to more individual & bespoke services catered for specific requirements.
A membership with Malta Chamber of SMEs will guarantee that you are constantly updated and informed with different opportunities which will directly benefit your business and help you grow. It also entails you to a number of services which in their majority are free of charge and offered exclusively to its members (in their majority all free of charge).