The European Commission yesterday pledged to prioritise its ongoing fight against tax evasion next year particularly against large European companies using subsidiaries in other EU member states to avoid paying their full taxes.

Publishing the EU executive’s road map for next year, President Jean Claude Juncker said Brussels wanted a fairer approach to taxation. It would introduce an action plan to combat tax evasion and tax fraud, including measures at EU level, moving to a system under which the country where profits are generated would also be the country of taxation.

The Commission said it intended proposing legislation on the automatic exchange of information on tax rulings and stabilising corporate tax bases.

These proposals may be very controversial for some member states, including Malta.

The island is currently under investigation, together with a number of other member states, particularly over tax rulings exempting some companies from paying taxes.

Migration will also be another priority among the 23 initiatives for next year.

The Commission’s programme includes the development of a new approach entailing legal migration to make the EU an attractive destination for talent and skills.

It also wants to improve the management of migration into the EU through greater cooperation with third countries, solidarity among member states and fighting human trafficking.

In an innovative move, the Commission is also proposing the repeal of some 80 initiatives, including legislative proposals, which have been stuck on the discussion table without any hope of agreement among member states.

The Commission said that it would be pointless to let the EU institutions waste time and energy on proposals which have no chance of being adopted.