The European Commission published its report on the Activities of the European Union in the Tax Field in 2013 on 28 February 2014. The report looks at developments in 2013 relating to, among other matters the Common Consolidated Corporate Tax Base (CCCTB), the Taxation of Savings, the Parent Subsidiary Directive, the Financial Transaction Tax, tax avoidance and evasion measures and transfer pricing issues.
On the CCCTB the Irish Presidency held bilateral meetings with all Member States followed by a High Level Working Group Party meeting on 13 March 2013 with the Lithuanian Presidency of the European Council building on the Irish compromise proposal to advance technical work drafting their own text which Member States debated in December.
On the Taxation of Savings the ECOFIN Council gave the Commission a mandate to negotiate amendments to the EU’s agreements with Switzerland, Liechtenstein, Monaco, Andorra and San Marino on the taxation of savings income. Formal negotiations started with Switzerland in January 2014.
The Parent Subsidiary Directive seeks to avoid companies suffering from double taxation in the Single Market. The Commission adopted a proposal to amend the directive in late November 2013 to deal with cases where the Directive was seen to be used to avoid tax being paid in any member state (e.g. hybrid loan arrangements).