In addition to the VAT issue above, the Council discussed good governance in tax matters. The Council took note of the presentation by the Commission of a communication on the promotion of good governance in tax matters, and was briefed by the Commission on progress in the negotiation of an agreement with Liechtenstein on measures to combat tax fraud.
It is understood that the matter will be returned at the next ECOFIN meeting in June.
According to the press release, the Commission's communication reviews the issue of good governance in tax matters (international tax cooperation and common standards) in the context of the economic and financial crisis and recent meetings of the G-20.
It examines, with regard to direct taxation:
- how good governance in tax matters could be improved within the EU; the instruments that the Community and Member States have at their disposal to promote good governance internationally; and
- the scope for more coordinated action by the Member States, so as to support, streamline and complement action taken in international forum such as the OECD and the UN.