The Council will be called upon to agree on a proposal for an anti tax avoidance directive at the meeting of 17 June 2016. The draft aims to address some of the practices that are most commonly used by large companies in order to reduce their tax liability.
The draft directive is part of the 'Anti tax avoidance package' of measures proposed by the Commission in January 2016. The package builds on OECD recommendations concerning base erosion and profit shifting (BEPS), issued in October 2015.
In the area of taxation the Council adopts legal acts by a unanimous vote, and the European Parliament issues an opinion.
Financial transaction tax
The Council will review the state of play regarding a proposal for a directive introducing a financial transaction tax (FTT).
The proposed rules aim to ensure that the financial sector makes a fair contribution to costs incurred during the financial crisis and to discourage transactions that do not enhance the efficiency of financial markets. 10 member states - Austria, Belgium, France, Germany, Greece, Italy, Portugal, Slovakia, Slovenia and Spain - are working on the proposed directive in the framework of enhanced cooperation.
Fighting VAT fraud: reverse charge mechanism
The Council will discuss, on the basis of the Commission's presentation, possible broader uses of the reverse charge mechanism, in particular at national level for domestic transactions.
The mechanism, according to which the liability for payment of VAT is shifted from the supplier to the customer, is considered by some policy-makers to be an effective method for preventing VAT fraud.
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