On 25 May 2016, the Council adopted conclusions on the third country aspects of the Commission's anti-tax-avoidance proposals.
The conclusions relate to two elements of the package:
- a communication on an external strategy for effective taxation;
- a recommendation on the implementation of OECD measures against tax treaty abuse.
The communication identifies measures to help promote good governance in tax matters globally, tackle external tax base erosion threats and ensure a level playing field for businesses. It suggests ways for good tax governance to be better integrated into the EU's external relations policies. The communication includes proposals for inserting tax governance clauses in agreements with third countries and regions.
The Council conclusions refer amongst other things to an EU list of third country non-cooperative jurisdictions, on which work will start in September 2016. They additionally highlight the importance of assisting developing countries in meeting good tax governance standards.
The Commission's recommendation covers bilateral tax treaties between member states, and between them and third countries. It encourages them to include a general anti-tax-avoidance rule, and to make use of OECD model provisions.
The conclusions were adopted without discussion at a meeting of the Economic and Financial Council.