The European Commission has adopted a Communication on Double Taxation (the imposition of comparable taxes by two (or more) tax jurisdictions in respect of the same taxable income or capital). Highlighting where the main problems with double taxation lie within the EU, the Communication outlines concrete measures that the Commission will take to tackle them, including the creation of an EU Forum to develop a code of conduct on double taxation and a binding dispute resolution procedure for unresolved double taxation cases.

Algirdas Šemeta, Commissioner for Taxation, Customs, Anti-Fraud and Audit, said on this issue: "We must be able to send the message to all citizens, businesses and trading partners: the EU does not tax twice! Double taxation is one of the biggest tax obstacles to the Internal Market, and can no longer be overlooked. Today I have presented clear and feasible ways to tackle double taxation, which will make the EU a more attractive place to live and work in."

Currently under EU law, there is nothing to oblige Member States to prevent non-discriminatory double taxation. Member States may try to relieve double taxation through measures such as bilateral and multilateral double taxation conventions, however some double taxation still remains and creates barriers to cross-border establishment, activity and investment in the EU.

To read the Communication (COM (2011) 712 final) in full, click here. The Commission press release is available here.