4.2 The code of conduct, which is not legally binding, commits Member States to respecting the principles of healthy tax competition.

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4.3 The Committee welcomes the results of this code of conduct, as by eliminating harmful tax practices17, the Member States are thus increasing healthy tax competition within the EU and helping to complete the internal market.

A new liberal tax code has been effective since January 2005 and further measures to improve the business climate are on the government agenda.

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(Objective 1) Enhance tax co operation, tax administration, tax enforcement and tax collection for cross border operations between MS tax authorities

(Objective 1) Enhance tax co operation, tax administration, tax enforcement and tax collection for cross border operations between MS tax authorities

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3.7 The three basic types of tax relief are tax deferral, tax allowance and tax credit.

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