Brussels: The European Commission is betting that tax simplification can make the Union friendlier to business without opening the door to evasion, and lawmakers spent this week probing whether that promise holds. The Commission adopted its tax simplification package on 24 June 2026, bundling a Tax Omnibus with a recast of the rules on administrative cooperation between national revenue authorities.
The headline claim is a saving of roughly 7.9 billion euros in compliance costs for companies. Brussels wants to strip duplicate filings, align overlapping reporting duties and give firms a lighter, more predictable path through the bloc’s dense direct-tax rulebook. Officials pitch the effort as a competitiveness measure as much as a bookkeeping one.
Parliament wasted little time testing the detail. On 14 July 2026 the FISC subcommittee held two public hearings, pressing witnesses on whether lower administrative burdens can coexist with the Union’s long campaign against tax avoidance. Several members warned that simplification cannot become a quiet amnesty for aggressive planning, and they want safeguards written into the text rather than promised in speeches.
The tax simplification package still faces a steep procedural climb. Direct-tax files demand unanimity in the Council, so a single finance minister can stall the whole effort, and the Parliament is only consulted rather than given a veto. That arithmetic hands national capitals enormous leverage over the final shape of the Omnibus.
Business groups broadly cheer the direction. Smaller firms in particular complain that cross-border compliance eats time and money they cannot spare, and they see the recast cooperation rules as a chance to end the maze of parallel data requests from different tax offices. Tax advisers, however, caution that badly drafted simplification can create fresh loopholes faster than it closes old ones.
Civil-society tax campaigners strike a warier note. They fear that trimming reporting requirements could dim the visibility revenue authorities gained through a decade of transparency reforms, and they argue that any rollback of information exchange would weaken the fight against profit shifting. The Commission insists the recast preserves data flows while cutting the paperwork around them.
The coming months will decide who is right. A Council working party on direct taxation is scheduled to examine the file, and the Parliament’s economic affairs committee is already loading related tax dossiers with amendments. The Commission set out its case in its official announcement of the simplification package, which frames the reform as proof that Europe can cut red tape and defend its tax base at once.
Whether member states agree will shape more than accountants’ workloads. The Omnibus has become a small referendum on how far Brussels can deregulate before it dents the revenue tools it spent years building.




