The Council agreed an amendment to EU tax rules in order to prevent the double non-taxation of corporate groups deriving from hybrid loan arrangements.
This will close a loophole that currently allows corporate groups to exploit mismatches between national tax rules so as to avoid paying taxes on some types of profits distributed within the group. An amending directive will be adopted without further discussion at a forthcoming meeting. The Council approved draft country-specific recommendations to the member states on their economic and fiscal policies, as well as a specific recommendation for the eurozone as a whole.
The Council approved conclusions on:
– implementation of a code of conduct aimed at eliminating situations of harmful tax competition, in the light of a six-monthly report;
– a draft directive on the taxation of energy products;
– a draft directive on the establishment of a standard VAT return with the aim of reducing the administrative burden on SMEs.