Local view for "http://purl.org/linkedpolitics/eu/plenary/2004-03-30-Speech-2-103"

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"en.20040330.4.2-103"2
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". This proposal for a directive forms part of the original Monti package of 1998, which paved the way for greater tax harmonisation within the European Union. Regardless of what one might think of the proposals as a whole and given that we are seeking to create an internal market, one can understand the need to establish a degree of tax harmonisation to combat tax evasion and double taxation. We do, however, have one fundamental objection to the approach that has been outlined, because the concept of tax harmonisation is federalist in nature and touches on one of the fundamental pillars of state sovereignty: a state’s ability to tax families and businesses, thus ensuring its autonomy. Furthermore, we are not convinced of the economic advantages of tax harmonisation as opposed to the advantages of maintaining healthy tax competition. For this very reason, this directive and the remainder of the package were only approved in June 2003. The directive relates to interest payments and royalties transferred between associated companies with the aim of abolishing deductions from these payments at source. This amendment seeks to extend the list of companies covered and to take account of the directive on parent companies and subsidiaries and the directive on mergers. Our concern is that the directive must not make tax evasion easier or deprive Member States of the appropriate means with which to combat fraud and abuse."@en1

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