At the Council meeting of 6 May 2014 the Council has not yet reached an agreement on the proposal to amend the EU's Parent-Subsidiary Directive.
The proposal is on closing a loophole that has allowed corporate groups to exploit mismatches between national tax rules so as to avoid paying taxes on certain types of profits (hybrid loans) distributed within the group. The proposed amendment would prevent double non-taxation by providing that the member state of the parent company will only refrain from taxing profits from the subsidiary to the extent that such profits are not deductible by the latter. In the light of ministers' comments, the Council called on national experts to examine the dossier further and to clarify the text as necessary. The presidency's intention is to seek adoption of the amending directive at the Council's meeting on 20 June.
Furthermore the Council discussed the situation concerning the introduction of a financial transaction tax (FTT) in 11 member states through the "enhanced cooperation" procedure. The presidency reported on work carried out so far.