Corporate taxation system has reached its limits, say ministers and MEPs

Tax competition as such cannot be avoided, but today's system has reached its limits and led to unwanted side effects. Small firms should not have to bear the tax burden of multinationals that pay very little. Action is needed to harmonise corporate tax practices across Europe, so as to make tax competition clearer and fairer. This was the key sentiment voiced at Tuesday's meeting of the Special Committee on Tax Rulings with finance ministers from Luxembourg, Italy, France, Spain and Germany.