EU SUPERSTATE (step 1): Fury over plans for European-wide ‘tax harmonisation’

PROPOSALS to introduce a European Union-wide tax system has infuriated British taxpayers — who fear the move is yet another flagrant step in Brussels’ attempt to build a Euro-superstate.

The controversial system, which is described in EU documents as the “harmonisation of European taxation”, was put forward by the EU Economic and Monetary Affairs Committee last week. 

The group’s explanatory statement reads: “Building economic and monetary union must be achieved through a harmonisation of European taxation. Fair and effective corporate taxation must become the cornerstone of the single market.

“If we are to have a reliable single market, the Member States must come to an agreement on tax matters. A coordinated and harmonised approach to the implementation of tax systems is vital in order to guarantee the proper functioning of the single market and the success of the capital markets union.”

While the system is being advertised as a way to combat tax avoidance, it would penalise countries which offer low corporate tax in an effort to stimulate investment and growth. 

Another aspect of the proposal, a EU taxpayer ID, has also rankled British taxpayers, with UKIP finance spokesman Steven Woolfe MEP blasted the plan as a “shameless” attempt to create a “European super-state.”

He said: “This is a shameless attempt to create a centralised EU tax system. By forcing an EU taxpayer ID — effectively a new continental National Insurance number — on every European the EU is laying the foundations for a European tax and making no apologies for it.

“Mr Cameron is peddling lies. This is no reformed EU, a European super-state is the end goal. It already has a Parliament, a currency and a flag. A centralised tax system is currently being implemented followed swiftly by a fully-fledged standing army. There is no such thing as voting for the status quo. Don’t take the risk. Vote Leave.”

Jonathan Isaby, Chief Executive at the TaxPayers' Alliance, echoed these concerns. 

He told Express.co.uk: "This idea will only add further burdens on British taxpayers and harm our ability to be competitive in global markets. If politicians are really serious about clamping down on tax avoidance, then they could start by simplifying the tax code and getting rid of the loopholes that only those with clever accountants can use. 

“It is clear that the public is losing faith in the tax system and the only way to rebuild that trust is by radical reform.”

However, the European Commission quickly moved to dampen concerns they were attempting to override the tax system of each individual state in the 28-country bloc, with Commissioner Pierre Moscovici stating: “I want no mistruths here — we’re not questioning states’ right to set tax rates. No tax ID numbers are in our proposal.”

Commission finance spokesperson Vanessa Mock added: “There are no Commission plans on the table concerning an EU Tax Identification Number or TIN. Commissioner Moscovici was crystal clear on this during his appearance at the European Parliament on Tuesday.

“There’s been a recommendation from the European Parliament report on the Anti-Tax Avoidance Directive.

“A TIN is a tool that could potentially be used to target cross-border tax evasion, but this is something that we need to look at closely and extensively before deciding on any course of action. The Commission does not have any views either way on the matter at the moment.

“Contrary to some reports, a TIN would NOT be an EU-wide social security number. It would only be used for individuals or businesses that earn money or make profit in more than one EU Member State.”