UK supportive of EU taxation policies but warns against further encroachment on sovereignty

An audit of the effects of the UK’s EU membership on taxation carried out by the government has found broad support for current tax policies, but reported that these views would be subject to change if the EU attempts to encroach further on the country’s sovereignty.

The government consulted Parliament and its committees, businesses, and other interested parties (in the case of taxation, ranging from the British Bankers Association to Imperial Tobacco to PricewaterhouseCoopers) to look at how the EU’s power granted by EU Treaties work in practice.

While most respondents supported unanimity voting in taxation to protect British interests, many added that there needed to be improvements to the process of creating tax policy and legislation at EU-level taxation, with some citing the financial transactions tax as evidence for their concern.

The report added that international action was recognised to be necessary for clamping down on corporate tax avoidance and offshore tax evasion.

The audit can be read in full here.