More specifically, high tax countries fear the effects of creating a precedent on supranational influence over their tax policy, and may therefore not be willing to support combating tax havens further down the road if this implies that their own concessions will be endangered. The merits are finely balanced between taxes on income vs. consumption taxes. No tax system is based on one leg. Corporate taxes may play a residual role. Stricter enforcement may cause additional problems.
Loopholes make imperfect capital income taxes bearable and acceptable.
A waterproof system may cause revenue from capital to decrease. We still collect some income from capital because the system has some safety valves. The report presented a number of new corporate tax structures for the EU agenda. But the details of these proposals have to be worked out by the present task force, in order to make them more realistic and more acceptable to policy-makers and revenue authorities. It is necessary to provide further detail and analysis on the implications of reform on tax administrations.