Last week, the European Parliament's Subcommittee on Tax Matters (FISC) hosted a public hearing on „Tackling tax obstacles in the Single Market“. Johanna Hey had the distinct pleasure of serving as an expert on the committee and sharing her views on how to address remaining tax-related distortions within the EU Single Market legislation.
Johanna Hey identified overregulation and the increasing complexity of EU tax law as the main obstacles for the competitiveness of the Single Market. According to her, before launching new harmonization initiatives in the field of corporate tax, priority should be given to reviewing the already existing legal framework. Prof. Hey pointed out that simplification and decluttering need to be understood as deregulation, i.e. completely abolishing overlapping and disproportionate rules that hinder rather than foster cross-border investment.
„Tackling tax obstacles in the Single Market requires a strategic shift towards coherence, simplicity, and effectiveness. Decluttering existing legislation, focusing on clearly defined policy objectives, and reducing cross-border tax risks – especially for work mobility – are essential to strengthening the Single Market and its competitiveness“.
The entire statement as well as a recording of the hearing can be found here (→ Link).