Brussels, 12/07/2012 (Agence Europe) - During a debate at the end of the 10 July Ecofin Council, ministers examined the Cypriot Presidency's taxation priorities and timeline for Council meetings, which Taxation Commissioner Semeta commented upon.
Indirect taxation. The Cypriot Presidency will follow up on the Council's conclusions on the future of VAT and the need for a simpler, effective, robust and fraud-proof VAT system. Political agreement on the VAT one-stop shop is expected at the 9 October 2012 Ecofin Council and the Presidency is planning to open talks on a draft Council directive on coupons to iron out inefficiencies due to differences in member states' rules.
Financial Transactions Tax (FTT). The Commissioner took note of the lack of unanimous agreement on the Commission's draft legislation and lack of agreement on alternatives to an FTT at the European Summit at the end of last month, pointing out that the aims pursued were valid and the Commission is prepared to consider enhanced cooperation to bring in the tax among a restricted number of member states. The finance minister of Germany, the country that raised the question at the European Summit, stressed the importance of the tax and the need for swift progress. The Cypriot Presidency will follow up on the talks and deal properly and constructively with the matter, it said. A policy debate may take place at the 9 October Ecofin Council.
Energy taxation. The Commissioner is pleased that energy taxation is a Cypriot Presidency priority because a lot still needs to be done to achieve the desired outcome. He said that the Commission would not back a compromise that did not include a carbon tax element in the new minimum tax rates. Agreement is expected among ministers at the 13 November Ecofin Council.
Common consolidated tax basis for company tax. The Commissioner says rapid progress is required here too, and is therefore encouraging the Presidency to pursue talks on this key issue for growth and jobs. A Council report will be submitted to the Ecofin Council on 4 December, which is due to publish a conclusions document on a company tax code of conduct.
Tackling fraud and tax evasion. The Commissioner drew the ministers' attention to the recent European Commission report on tackling tax evasion and more detailed plans to be introduced later this year (measures to be introduced in the short-term and draft legislation on tax havens and “aggressive tax planning”), hoping to get support from the Presidency, which is planning a policy debate on the VAT fraud rapid reaction system at the 13 December Ecofin Council, which is also due to consider the Fiscalis exchange of information and know-how system for tax offices.
Savings tax directive. Semeta said that tangible agreement on tackling tax evasion might take the form of agreement at Council level on the draft directive on savings tax and parallel talks on EU tax agreements with five tax havens, one of which is Switzerland. The Commissioner stressed the urgency of this for the European Summit and European Commission, and the need to make decisions speedily. Agreement in principle on the savings tax directive might be possible at the 13 November Ecofin Council.
Fiscus. In connection with the Multiannual Financial Framework and the taxation and customs action plan for 2014-2020, the Council and EP decided recently to divide up the Fiscus Programme (cooperation among tax and customs offices, networking and civil servants' training). The Commission will soon be unveiling an amended proposal taking account of technical talks, explained Semeta, offering to work with the presidency on future work in this area.
On 4 November 2012, the ECOFIN Council is likely to adopt a report on tax issues for the European Summit. (FG/transl.fl)