1. The European initiatives concerning SME’s taxation by Stefano Marchese Chairman of FEE Direct Tax Working Party

2. Proposals for reforms of SMEs taxation October 2001: EC Communication on Company Taxation in the Internal Market April 2002: EC Conference in Brussels July 2002: Creation of the Joint Forum on Transfer Pricing November 2003: EC Communication reviewing progress on removal of cross border tax obstacles December 2003: EC Conference in Rome

3. European Commission Strategy Immediate solutions Longer term goal to provide SMEs with a common consolidated tax base for their EU-wide activities

4. What’s happening in Europe concerning SME’s taxation? Impact of the ECJ on national tax law The Lisbon objectives

5. Current proposals Home State Taxation: pilot project for SMEs a Common (Consolidated) Tax Base based on IFRS

6. Other initiatives in SMEs corporate taxation Amendments to the Merger Directive (2003) Amendments to the Parent – Subsidiary Directive (2003) Interest and royalties Directive (2003) Code of Conduct for business taxation (2003) Code of conduct to eliminate double taxation in transfer pricing cases (April 2004)