Ref. Ares(2017)624051 - 03/02/2017
EUROPEAN COMMISSION
DIRECTORATE-GENERAL
TAXATION AND CUSTOMS UNION
Direct taxation, Tax Coordination, Economic Analysis and Evaluation
Company Taxation Initiatives
Brussels, 25 January 2017
Taxud D1/
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Ares (2017)717212
Meeting Report Code of Conduct Group
25 January 2017
I. EXECUTIVE SUMMARY
1. Appointment of Chair - After brief remarks from both the
and
candidates, an election was held and the
candidate,
was
elected as the new Code Chair.
2. Appointment of Vice-Chairs - the EE delegate was appointed as the new
second Vice-Chair of the Code of Conduct Group.
3. Work Programme during the MT Presidency - Agreed without discussion.
4. Rollback and Standstill returns including administrative practices for the
year ending 31 December 2016 - All MS provided a response and 6 MS had
specific measures under standstill. COM summarised these measures and
undertook to seek more information from the relevant MS bilaterally.
5. Standstill: a. Croatia: The Group agreed that COM should proceed to a
formal assessment of the Croatian measure.
b. Aruba: This matter was postponed until the next meeting in order to seek
further information from Aruba.
6. Rollback: Patent Boxes: Further information to be provided by Italy on the
rollback of their patent box.
7. Standstill: Patent Boxes: Following a general discussion
, they were all adjourned
to the next meeting for the new Chair to deal with. It was suggested that
MS could write to the Commission and outline their views
.
8. External Strategy of the EU: This matter was discussed as the first item and
then again, after some redrafting, in the afternoon.
.
9. AOB: None
Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË - Tel.
+32 22991111
II. REPORT
1. Appointment of Chair:
The appointment of a new Code Chair was dealt with at the beginning of the
meeting. The representative of the General Secretariat of the Council,
outlined the election procedure to the Group.
Both candidates (
and
made brief remarks, and this was followed by the
distribution of ballots. The results were then announced:
was elected
and begins
term in February.
2. Appointment of Vice-Chairs
This agenda item was taken in the afternoon.
The EE delegate was appointed as the new second Vice-Chair of the Code of
Conduct Group
.
The first Vice-Chair remains Malta.
3. Work Programme during the MT Presidency
The Work Programme for the Group for the six months of the MT Presidency was
introduced to the Group.
The Group agreed the Work Programme without discussion.
4. Rollback and Standstill returns including administrative practices for the year
ending 31 December 2016
This agenda item was taken first in the afternoon. COM was invited by the Chair to
update the Group on MS annual returns.
The Commission pointed out that there was now an automatic obligation on MS to
notify the Group, at the end of each calendar year. All MS had notified prior to the
meeting.
Six MS notified the Group of specific measures that might fall under the Code. One
of these notifications, ES, related to Patent Boxes and was therefore dealt with under
that specific agenda point.
In relation to the other five MS:
HR notified a number of measures, COM's conclusion was that a closer look was
required for these and therefore we would return to this point at the next meeting.
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In relation to LT and LV similarly more information is needed from the MS and
therefore COM will follow up bilaterally.
As regards LU, who have issued a revised circular on Transfer Pricing, in principle
this appears fine however COM will discuss with its own TP experts and return to
this point.
Finally PL notified a measure relating to shipbuilding. COM undertook to look at
how shipbuilding was dealt with in the past and also return to this point.
5. Standstill: a. Croatia:
The COM began with a discussion of the agreed description of the HR regime under
consideration, an outline of COM's concerns and how it may be potentially harmful.
HR intervened to clarify certain points.
Chair concluded the point by asking COM to draft an assessment, with the Group's
agreement.
5. Standstill: b. Aruba:
COM is in the process of establishing the facts in relation to the Aruba measure
under consideration.
At COM request the Chair adjourned this point in order to get further information
from the Aruban authorities.
6. Rollback: Patent Boxes
All MS have responded to the COM request for information about the rollback of the
old, non-nexus compliant patent boxes.
COM presented an overview table of MS compliance with their rollback obligations
The table circulated for this meeting is similar to the one presented in November,
with some changes brought following communications from Spain
In addition is now added to the table as their regime is now regarded as an "old"
IP regime.
COM concluded that the picture of the rollback of pre-existing IP boxes is overall
quite positive, with some exceptions.
provided a short update to the Group on their efforts to comply with their rollback
obligations, indicating that they are still considering this issue internally. They also
explained that
.
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7. Standstill: Patent Boxes.
Chair began by asking COM for an overview. COM opened the discussion by
explaining that there were 11 regimes under review:
.
The COM also spoke about the horizontal issues that arose over the course of
carrying out the assessments,
The Chair wrapped up discussions by suggesting that these issues should be left for
the new Chair to deal with, and invited written comments. Chair also confirmed FR
question that all matters remain on the table for discussion, including criterion 5.
8. External Strategy of the EU
This item was taken at the beginning of the meeting. The Chair invited the MT
Presidency to discuss its four room documents.
The MT PRES took each document in turn, and MS contributed a number of
comments and drafting suggestions.
The Group returned to this in the afternoon when redrafts were presented.
.
MT noted the comments of MS and
.
9. Any other Business: None
ENDS.
Circulation:
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