The European Council of June 2023 stressed the need to trace the path along which the future of the Single Market shall be developed, entrusting Mr. Enrico Letta with a mandate for the drafting of a “High Level Report” on the relevant subject.
OATT holds that the solutions for some problems cannot be postponed and has highlighted three major area that shall be considered in the High-Level Report.
First, reducing tax compliance costs that affect both large and (mainly) small and medium enterprises adopting of a uniform set of rules for determining the taxable base of corporate income and further harmonizing corporate and procedurals rules.
Second, due to the growing need for the consistent solution of tax disputes through Europe, OATT holds that the existing arbitration mechanism should be widened to tax controversies arising from EU law, such as the Directive on the Global Minimum Tax
Third, the social dimension of the EU should be considered (and balanced) jointly with the economic targets and the efforts of the States to reduce emigration from less developed area should be supported by the EU through structural solutions (i.e. increasing the redistribution powers of European institutions or through a deep reform of the State Aid system).