Member States and the European Union will continue to take determined action to promote sustainable growth, jobs and competitiveness in accordance with the five priorities set out in the Annual Growth Survey. One of the policies is reinforcing tax and other incentives for job creation, including shifting taxes away from labour.
The European Council calls for further progress at the global and EU levels in the fight against tax fraud and evasion, aggressive tax planning, base erosion and profit shifting (BEPS) and money laundering. The European Council welcomes work undertaken in the OECD and other international fora to respond to the challenge of taxation and ensure fairness and effectiveness of tax systems, in particular the development of a global standard for automatic exchange of information, so as to ensure a level playing-field. Building on the momentum towards more transparency in tax matters, the European Council calls on the Council to reach unanimous political agreement on the Directive on administrative cooperation in early 2014. It calls for speeding up the negotiations with European third countries and asks the Commission to present a progress report to its March meeting. In the light of this, the revised Directive on the taxation of savings income will be adopted by March 2014. The European Council takes note of the Council report to the European Council on tax issues, welcomes the establishment by the Commission of the High Level Expert Group on Taxation of the Digital Economy, and invites the Commission to propose effective solutions compatible with the functioning of the Internal Market, taking into account the work of the OECD, and to report back to the Council as soon as possible. Progress should also be made quickly towards agreement on amending the Parent-Subsidiary Directive.