On 26 October the European Commission set out a plan to harmonise the corporate tax base across the EU. The plan includes a number of existing taxation and customs initiatives, and proposes a set of new measures to modernise the EU's taxation and customs system.

"With globalisation and increasing cross-border activity, a Community approach on some tax and customs issues would be of considerable benefit to business and trade," said Taxation and Customs Commissioner László Kovács.

At present, the 25 national tax systems represent an obstacle to the smooth functioning of the single market, and impose extra costs on businesses across the EU. As such, they hamper investment in research and development (R&D) and pose a threat to sustainable economic growth.

The Commission's move to simplify and improve customs and taxation systems across the EU is part of a broader strategy to cut red tape and stimulate growth.

Commissioner Kovács has already unveiled plans to combat counterfeiting and introduce a more unified approach to car taxation.

Other Commission tax proposals will concern the modernisation of the Customs Code, the modernisation of VAT rules and a communication on R&D tax incentives.

If you want to know more about the EU's taxation and customs, go to: http://europa.eu.int/comm/taxation_customs/taxation/index_en.htm