The European Commission presented an Action Plan for a more effective EU response to tax evasion and avoidance. As a first and immediate measure, the Commission also adopted two Recommendations to encourage member states to take immediate and coordinated action on specific pressing problems.

The new Action Plan published by the European Commission presents the way forward for a more effective EU response to tax evasion and avoidance. In June 2012, the Commission also presented some measures to tackle fraud and evasion in the EU. In particular, the Plan sets out a comprehensive set of measures, according to the Commission, to help member states protect their tax bases and recapture billions of euros legitimately due. As an instant first delivery, the Commission also adopted two Recommendations today, to encourage member states to take immediate and coordinated action on specific pressing problems.

In addition, the Plan includes a Taxpayers' Code, an EU Tax Identification Number, a review of the anti-abuse provisions in key EU Directives, and common guidelines to trace money flows. In order to further improve the work within the EU on harmful tax competition, member states are urged to reinvigorate the work of the EU Code of Conduct on business taxation. If solutions to remove particular mismatches are not agreed and implemented in a timely and effective way, the Commission will, where appropriate, come forward with legislative proposals for action. It is also recommended that the Code of Conduct is extended in scope to include special tax regimes for wealthy individuals.

The Commission also highlighted that in order to ensure that the Action Plan is driven forward, it will set up active new monitoring tools and scoreboards, to maintain momentum in the fight against tax evasion and avoidance. A new Platform for Tax Good Governance will monitor and report on member states' application of the Recommendations.