The European Code of Conduct Group Becomes Increasingly Important in the Fight Against Tax Avoidance: More Openness and Transparency is Necessary

Abstract

The European Code of Conduct Group is gaining importance in combating tax avoidance by multinational companies and any facilitation thereof through harmful tax competition between Member States. The importance of the Group in this area is steadily growing, as the Group has increasingly concerned itself with the design of a coordinated European taxation policy over the past few years. For example, they take far-reaching measures in the area of a common tax ruling policy, international hybrid mismatches and disclosure of aggressive tax planning schemes – to name just a few recent topics. In essence it qualifies as ‘pseudo-legislation’. Because of the enormous lack of openness and transparency, the work of this important Group, and the role played in this policy area by (the various) Member States, is often unknown territory for the general public. Through this article, the author attempts to change this. To this end, he discusses current issues the Group is dealing with. In addition, he explores a number of steps that could be taken to increase openness and transparency of the work of the Group.