In line with what is set out above and as indicated already in the Annual Growth Survey 2012[13], the Commission further points out the urgent need for a new impetus to be given to the work that is currently discussed in the context of the Code of Conduct for business taxation[14] (Code).
Over the past years, making progress and achieving tangible results in the Code of Conduct Group charged with the assessment of tax measures that may fall within the scope of the Code[15] has become increasingly difficult. This relates in part to the fact that more and more complex issues are being addressed but also to a need to refine and sharpen the expected results, the timetable for such results and the means of monitoring their implementation.
The Commission therefore calls on Member States to consider actions to improve the effectiveness in achieving the Code's original goals, for example by more rapidly taking topics to Council level when political decisions are urgently needed. The Code of Conduct Group currently also discusses the issue of mismatches where solutions are rapidly needed. If such solutions to remove mismatches are not agreed and implemented in line with clear deadlines, the Commission stands ready where appropriate to make proposals for legislative action instead.
In addition, in cases where existing Directives are found to provide opportunities for aggressive tax planning or prevent appropriate solutions by allowing double non-taxation, the Commission will act[16]. Work should also intensify on special tax regimes for expatriates and for wealthy individuals, which are harmful for the operation of the internal market and reduce overall tax revenues.
For its part, the Commission will continue to assist Member States in ensuring the effective promotion of the Code of conduct for business taxation in selected third countries and to promote fair tax competition globally by negotiating good governance provisions in relevant agreements with third countries and by assisting developing countries in line with the Commission's standing policy on tax and development[17].
