25 January 2024 - BusinessEurope has published a new position paper on the European Commission’s BEFIT proposal, with BusinessEurope Director General Markus J. Beyrer emphasizing the importance of global alignment in tax reform. Beyrer stated, "European businesses support the Commission’s overall objectives of strengthening the Single Market by simplifying the tax landscape and reducing tax compliance costs for businesses." However, he also pointed out that "for the BEFIT reform to be effective, it must align fully with global tax rules."
In light of the complexities of the changing global tax environment, Beyrer urged EU legislators to exercise caution, suggesting that they "should wait for more stability in global corporate taxation before advancing detailed proposals." He further highlighted the need for an impact assessment, stating that "the Commission should also conduct an impact assessment of how these specific proposals will impact businesses." Beyrer expressed concern that the current impact assessment falls short, noting that "it only considers potential benefits from a theoretical simplification of corporate tax rules."
BusinessEurope's position paper aims to encourage a thorough evaluation of the BEFIT proposal to ensure that it aligns with global tax standards and accurately assesses its impact on businesses.