The EFS, Erasmus University Rotterdam Autumn Congress, held on 3 October 2024, explored the future of Pillars I and II in international taxation. Moderated by Ciska Wisman, the event featured presentations from tax experts, including Maarten de Wilde, Jaap Bellingwout, and Hans van den Hurk, followed by responses from Marlies de Ruiter. Discussions centred on the effectiveness of Pillar II in curbing tax competition and avoidance, with critiques highlighting legal uncertainties, inconsistencies with EU law, and the shift from income-based to subsidy-driven tax competition.
De Wilde examined whether digitalization has truly disrupted corporate taxation or merely exposed existing flaws. Bellingwout discussed the Business in Europe: Framework for Income Taxation (BEFIT) proposal for EU tax harmonization, emphasizing its potential but also its administrative challenges. Van den Hurk questioned Pillar II’s necessity, suggesting that existing anti-avoidance measures might suffice and advocating for simpler solutions, including UN-led initiatives.
A key concern was whether the current reforms ensure fairness and sustainability, particularly given geopolitical tensions and the risk of unilateral tax measures. The congress concluded with skepticism about the viability of Pillars I and II, amid shifting global tax policies and emerging alternatives. The ongoing debate underscores the complexity of achieving international tax cooperation.
EC Tax Review