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Brussels flags common corporate tax

An article in the FT says the EU’s tax commissioner Laszlo Kovacs said he would introduce legislation if necessary to improve tax co-ordination between the the EU’s 25 member states.

Mr Kovacs also set out papers on co-ordinating exit taxes for people who move to another member state. At present their assets are sometimes taxed twice.

Further papers on inheritance tax, withholding taxes and anti-avoidance rules are planned.

Mr Kovacs intended to publish legislation to create a common corporate tax base in 2008, and said the initiative had backing from a large number of member states.

Countries including Britain, Ireland and Slovakia are strongly opposed, but Mr Kovacs said he could go ahead anyway under the little-used “enhanced co-operation” rule, which allows groups of EU countries to pioneer projects.