European Commission 28 January 2016, COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on an External Strategy for Effective Taxation

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This Communication from the European Commission to the European Parliament and the Council (COM(2016) 24 final, 28 January 2016) establishes a framework for an EU external strategy on effective taxation, proposing coordinated measures to promote tax good governance globally, counter external base erosion threats, and ensure a level playing field for businesses operating in the Single Market. The strategy rests on three principal pillars: updated EU good governance criteria encompassing transparency, exchange of information, fair tax competition, and G20/OECD BEPS minimum standards (set out in Annex 1); the integration of renewed tax good governance clauses and state aid provisions into agreements with third countries (Annex 2); and the development of a common EU process for screening, assessing, and listing non-compliant third-country jurisdictions, accompanied by harmonised defensive counter-measures. The Commission additionally calls upon Member States to endorse the updated criteria and proposed listing process, and commits to integrating tax good governance standards into the EU Financial Regulation and to supporting developing countries' domestic revenue mobilisation capacity.AI