The EU’s Tax ‘Decluttering’ Is a Big Ask. Here’s What it Means.

The start of a new European Commission term customarily includes a rush of legislation, but the commission’s tax department has a different mission this time: Peel back and simplify the EU’s tax code.

It’s a process known as decluttering, identifying tax provisions and clauses that are duplicative, irrelevant, or inapplicable, or that place an unjustified burden on business.

The European Union’s executive branch says decluttering will boost competitiveness, and businesses are all for it. But advocacy groups fret that it could undermine the bloc’s efforts to tackle corporate tax abuse.

The commission, due ...