Koch appointed expert in EU FISC Committee

[Translate to Englisch:] Koch1
© European Union, 2023

Prof. Dr. Reinald Koch, holder of the Chair of Business Taxation, has reported on aspects of German tax policy to combat tax avoidance as a scientific expert to the EU Parliament's Subcommittee on Tax Matters. The panel assists the Economic and Monetary Affairs Committee on issues of tax fraud and tax evasion. The committee members are currently dealing with the tax policies of various EU member states in a series of hearings. Following the invitation of committee chairman Paul Tang, experts from politics, business and academia now gave presentations in Brussels on how Germany deals with this issue.

The background for the hearings is that, according to Tang, tax avoidance by multinational companies costs taxpayers in the EU up to 190 billion euros a year. The goal of the committee's work, he said, is for it to contribute to a simpler, more efficient and more sustainable tax policy for the Union.

© European Union, 2023

From a scientific point of view, Prof. Dr. Reinald Koch said, Germany's strict regulations to combat tax avoidance are understandable. After all, Germany is a high-tax country by international standards. Consequently, Germany has taken a restrictive approach to transposing European directives into national law in recent years, which is also reflected in the results: For example, compared with France, Germany's restrictive anti-avoidance measures would, to some extent, successfully prevent the erosion of tax bases and profit shifting – but at the cost of greater tax complexity and higher tax compliance costs. Data would also show that German companies are less likely to use tax structuring models compared to French companies.

Prof. Dr. Reinald Koch is deputy speaker of the KU Research Institute for Taxation. Koch and other researchers are looking at the general influence of taxes on companies, tax avoidance by multinational corporations, and the interplay between taxes and justice.