The plan lays out a number of different initiatives designed to deal with issues such as tax avoidance, the securing of sustainable revenues for tax authorities, and the overall strengthening of the Single Market for businesses.

Combined, this series of initiatives is meant to enhance the corporate tax environment across the 28 member states.

The commission is also in the process of publicly listing non-cooperative tax jurisdictions

“We have set out an ambitious yet realistic plan for fairer and more growth-friendly taxation in the EU,” Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue said in statement. “It rests on the core principle that all companies – big or small, local or global – must pay a fair share of tax where real economic activity is taking place and where their profits are actually made.”

Key actions being taken by the commission revolve around a plan to re-launch the Common Consolidated Corporate Tax Base (CCCTB), which is designed to offer a “holistic solution to corporate tax reform”, as well as providing a strong framework for collecting tax where profits are generated.

The commission is also in the process of publicly listing non-cooperative tax jurisdictions and is set to begin a public consultation with the intention of assessing if businesses should be required to disclose certain tax information.

“Corporate taxation in the EU needs radical reform. In the interests of growth, competitiveness and fairness, member states need to pull together and everyone must pay their fair share,” Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said in a statement. “The commission has today laid the foundation for a new approach to corporate taxation in the EU. Member States must now build on it.”

The commission believes that the rules that determine corporate taxation in the EU are no longer appropriate in the context of the modern economy, allowing multinational corporations to abuse national tax systems and escape paying billions in taxable revenue.

In an attempt to address the problem, the commission has created its Action Plan, which aims to create a fairer and more efficient tax system. In order to accomplish this objective, the OECD and its attempts to limit base erosion and profit shifting echo the initiatives laid out in the Action Plan.