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Sun, 12 May, 2013 02:14:38 AM
Prevention of tax evasion
FTimes Report, May 12


The Eurogroup and the ECOFIN Council will meet in Brussels on Monday and Tuesday respectively to discuss adjustment programs for the countries facing crisis and the prevention of tax evasion.

Finish finance minister Jutta Urpilainen will represent Finland at the meeting, said a press release.

The Eurogroup will meet on Monday to discuss the economic situation on the basis of the Commission's spring forecast. The mid-term ratings of Greece, Portugal and Cyprus adjustment program are scheduled to be discussed.

Meanwhile, On Tuesday, the ECOFIN Council is expected to adopt conclusions on tax evasion and fraud prevention in line with Action Plan prepared by the council in 2012.

Finland welcomes the Commission's action plan and proposals for action. Finland considers that the Member States' tax bases are narrow and distortions should be corrected by a common action by all Member States.

The draft of the Council’s conclusion is acceptable to Finland.

The finance ministers will seek to reach an agreement on the savings tax directive changes. The Commission's proposal would be amended by the beneficial owner, agent (disclosure) and the payment of interest. In addition, the objective of the amendment would be to improve the quality of data exchanged.

The ultimate goal of the Savings Tax Directive is to guarantee that a person residing in another Member State, received by the savings accrued to effective taxation in accordance with the legislation of the Member State of residence. Luxembourg has announced to switch to apply the automatic exchange of information on savings directive from January 1, 2015.

Finland supports the renewal of the tax savings.

The Council intends to approve the negotiating mandate given to the Commission in Switzerland, Liechtenstein, Monaco, Andorra and San Marino of savings tax agreements amendment.

Finland supports the negotiation mandate of the Commission.

Banks' recovery and kriisinratkaisuvälineistö

The Finance Ministers will also discuss the Commission's proposal for credit institutions and investment firms in the recovery and resolution. Finland welcomes the proposal, as it removes a significant deficiency in the EU financial market legislation.

Finland considers it important that, at the EU level, there is the agreed minimum standards containing kriisinratkaisuvälineistö and using these tools by the authorities of the EU-wide network.

The Ecofin Council will also discuss the so-called macroeconomic instabilities. Finnish macro-economic instabilities are essentially linked with competitiveness and export market share decline.

Discussion will focus, however, Spain and Slovenia situations and the question whether they should put macro-economic destabilization process of elimination.

The finance ministers will still go through the G20 finance ministers and central bankers meeting, as well as the outcomes of the IMF and World Bank spring meetings of 2013. The main message in the IMF meetings was kolmitahtinen recovery of the world economy, the EU is a slow growth path, the United States is doing better and the emerging economies very hyvin.

In his speech, Minister of Finance Urpilainen emphasized good governance and inclusive growth, a condition brought out the fiscal, employment and equality issues.

The Ecofin Council will also discuss the Commission's proposal for the European Union's second supplementary budget, according to which the 2013 payment appropriations increase by 11.2 billion.

A resolution by the European Parliament for payment of all obligations is due by the end of this year, subject to the completion of the framework for the negotiations. Finland considers the proposal as too high, but can be considered a compromise solution.

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