Brussels, 15/05/2013 (Agence Europe) - After the ECOFIN Council on Tuesday 14 May, EU Taxation Commissioner Algirdas Semeta expressed disappointment that Austria and Luxembourg had refused to back the draft update of the EU savings tax directive because they want first to see decisive progress in the talks that are about to start between the European Commission and Switzerland, Andorra, San Marino, Liechtenstein and Monaco to adjust the EU tax agreements with the five countries to bring them into line with the savings tax directive changes and agreement by the five countries to bring about the automatic exchange of bank account information laid down in the savings tax directive (see EUROPE 10845).
The Commissioner said that he couldn't, and wouldn't, let progress within the EU depend on progress we make with countries outside the EU, but happily, there will be a further chance to remedy the veto and get the new savings tax directive adopted at the European Summit on 22 May. He said the savings tax was far too important to be ignored at the summit. The Commissioner said he was pleased with the agreement reached at the ECOFIN Council after two years of talks on a negotiating mandate for the European Commission to negotiate with the five above-mentioned countries and also the agreement on a conclusions document on the Commission's plans for clamping down on tax evasion. He hoped the heads of state would agree to take more effective measures to deal with tax evasion and would endorse the consensus that had emerged at the ECOFIN Council on the Commission's plans for countering tax havens and aggressive corporate tax planning so that a strong impetus can be given (see separate article). He said that very shortly draft legislation would be unveiled to extend automatic exchange of information to dividends, capital gains and royalties, saying that along with the changes to the savings tax directive (which will apply to all savings products and bodies, and also to trust funds, foundations and screen companies outside the EU), it would considerably extend the field of information to be shared spontaneously by the member states. At a meeting with the French president in Brussels on Wednesday 15 May, the president of the European Commission, José Manuel Barroso, admitted that the ECOFIN Council had had mixed results on taxation saying that although progress had been made, the truth was that the Summit would have to go much further next week. (FG/transl.fl)