EU finance ministers agree on measures against tax avoidance

RUSSELS, Dec. 9 (Xinhua) — European Union (EU) finance ministers Tuesday agreed on two taxation measures towards combating corporate tax avoidance and aggressive tax planning.

According to a statement, finance ministers have given their political backing to the anti-abuse clause of the Parent Subsidiary Directive and to the mandatory exchange of information between EU tax authorities.

“The agreement on the anti-abuse provisions of the Parent-Subsidiary Directive ensures a level-playing field for honest businesses in the EU’s Single Market and it closes down loopholes that could be exploited for aggressive tax planning,” said Economic and Financial Affairs Commissioner Moscovici.

EU finance ministers also took a final political decision on the automatic exchange of information between the tax authorities of the EU’s 28 member states. “This decision will ensure that the widest possible scope of automatic exchange within Europe is applied,” Moscovici said.

Such breakthroughs in taxation rules would be served as protection for European tax payers and a fair market.