According to EU Commissioner Paolo Gentiloni, experts at the EU Council are finalizing a reform of the 1997 Code of Conduct for Member States to prohibit damaging national business tax practices, but Hungary and Estonia are stalling the accord.
According to a draft resolution, the Code of Conduct will cover generally applicable tax features of a Member State that create opportunities for double non-taxation or that can lead to multiple use of tax benefits in connection with the same expenses, amount of income, or chain of transactions, in addition to dealing with very low or zero tax rates.
Furthermore, a State will be able to submit any tax action that an EU nation has implemented that has not been spontaneously informed to the EU Council’s Code of Conduct Group.
Despite the resistance of the two nations, the Slovenian Presidency of the EU Council has allegedly agreed to keep this issue on the agenda of the Ecofin Council on December 7 to attempt to achieve an agreement.
Source: etaf.tax
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