On June 17, 2022 the Economic and Financial Affairs Council (ECOFIN Council) held a meeting. Previous to this ECOFIN Council meeting, the following statement was published on the meeting website: “The Council may aim to agree its position on the pillar 2 directive transposing into EU law of the global agreement reached at the OECD Inclusive Framework that multinational corporations should not pay less than 15% tax anywhere in the world.”

 

The website of the Dutch news paper Algemeen Dagblad now reports that Hungary blocks/blocked an EU agreement on the "Proposal for a Council Directive on ensuring a global minimum level of taxation for multinational groups in the Union". According to the Algemeen Dagblad just when after months Poland is withdrawing its veto against the proposed EU directive, Hungary is raising all kinds of ‘unexpected’ objections.

 

Update as per 15.33 CET 17-6-2022

The fact that Hungary has vetoed an agreement on a Proposal for a “Council Directive on ensuring a global minimum level of taxation for multinational groups in the Union” has just also been confirmed by French Minister of Finance Bruno Le Maire and Commissioner Paolo Gentiloni Silveri during the press conference that took place at the end of the ECOFIN Council of June 17, 2022.

 

However, it should be noted that both Mr. Le Maire and Mr. Gentiloni seem to be positive that an agreement on the “Proposal for a Council Directive on ensuring a global minimum level of taxation for multinational groups in the Union” can be reached in the coming days/weeks.

 

Under current rules a change/introduction of EU tax regulations can only be achieved/adopted by unanimity of all 27 EU Member States. The fact that first Poland and now Hungary can single handedly block such a change/introduction seems to again leads to pleas to replace the system under which unanimity is needed by a system of quality majority voting.

 

 

Copyright – internationaltaxplaza.info

 

 

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