Michael Barnier and the rest of the Brexit negotiating team want Britain to continue following EU tax policies after Brexit, a leaked document has suggested.

The EU’s Brexit Task Force met with the European Parliament’s TAX3 secretariat last week to discuss how Britain will align its tax rules with the EU. However, campaign groups have argued that this proposal will be used to deliberately challenge a post-Brexit economy.

The draft documents written by the TAX3 committee stated: “The intention is that they commit to continue to alignment with EU standards, including for their overseas countries and territories.

“The mandate for the negotiating team is to define and create a level playing field, taking into consideration four main areas, of which one is taxation.”

The report suggested that the UK will continue applying the EU’s Code of Conduct on business taxation, meaning the British government, and any future British government, would not be able to cut or amend its own taxes.

However, by cutting taxes, some members of the Conservative party have argued Britain could become more competitive, with increased investment in the economy. But, under the proposals, the EU could potentially stop any UK government doing this under the proposals, leaving the UK without any competitive edge over the union.

The document further stated: “The objective is that the UK will abide by the tools adopted at EU level to fight tax evasion/avoidance, namely Code of Conduct on Business Taxation, Exchange of Information Directives (DAC) including Country by Country Reporting between tax authorities, Anti-Tax Avoidance Directive (ATAD).”

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