The European Commission will respond to the Panama Papers leaks on Tuesday by amending proposed new rules on tax havens.
Under the latest proposals, companies will be forced to disclose their activities in so-called tax havens.
Originally the plan was for big companies to reveal how much tax they pay and where.
Multinationals would disclose how much they paid in each EU state, with the rest of the world treated as a single item.
However the newest proposals have failed to convince everybody, with some campaigners describing them as toothless, owing to the lack of a common view between EU states as to what constitutes a tax haven.
Prime Minister David Cameron has received another blow in his battle with Europe over immigration rules, this time from the man he attempted - in vain - to deny gaining power in the European Commission.
Incoming EC president Jean-Claude Juncker labelled Cameron's bid to change the rules on freedom of movement in Europe as "irresponsible", echoing the stance of his predecessor José Manuel Barroso.
Cameron will tomorrow meet with the leaders of the other 27 nations in the European Union but is expected to face near complete opposition to his proposals to change one of the union's founding principles.
Incoming European Commission president Jean-Claude Juncker appears to have sidelined the British representative in his new EC college lineup.
Leak of line-up in new European Commission suggest big jobs for E Europe, small roles for UK+France, Germany gets what it wanted.
The website Euractiv said it has seen a draft version of a presentation which suggests that Britain's Jonathan Hill has been assigned to the energy and climate change brief despite David Cameron asking for a super-commisioner.
Mr Hill will report to Latvian Valdis Dombrovkis, who is the vice president for energy.
The leak also suggests that Germany has been assigned the crucial trade role while France, which asked for the economy position, has instead been given the competition title.
David Cameron has made his most direct bid yet to stop Jean-Claude Juncker becoming the next European Commission president.Read the full story ›
The European Commission has angered a number of British politicians by offering recommendations on how the British economy could be improved.
The measures set out by the Commission include:
- raise council tax for those in the most expensive homes
- increase the housing stock by creating "appropriate incentives" to build homes
- monitor house prices and "adjust" the Help to Buy scheme if necessary
- prioritse spending on infrastructure to boost the economic recovery
- streamline the qualification system to help improve the skills base
Conservative MP John Baron has the EU should have "more pressing concerns" than offering the UK advice on how to manage its affairs.
Mr Baron, a prominent eurosceptic, was reacting after the EU made a series of recommendations for the UK, including increasing council tax on expensive homes and tweaking the Help to Buy scheme.
Nick Clegg has said that the EU should focus on reforming itself rather than offering "lectures" to member states.
The Deputy Prime Minister was speaking after the EU offered the British government a series of policy recommendations, including raising council tax on high-value homes, building more houses and adjusting the Help to Buy scheme.
European Commission calls for the UK to raise taxes on expensive homes, build more housing and "adjust" the Help to Buy scheme are "in line" with government policy, a Treasury spokesman has said.
"The European Commission continues to support the UK Government's strategy including its commitment to deficit reduction. The Commission's recommendations are in line with the Government's approach," the spokesman said.
The European Commission has called on Britain to raise taxes on higher value properties, build more houses, and consider "adjusting" the Help to Buy scheme
The European Union's executive body urged the Government to reform the "regressive" council tax system as taxes are relatively higher on low value homes than high value ones.
Setting out its 2014 economic policy recommendations for the UK, the commission also urged the coalition to bring more people into paying tax to aid deficit reduction which has so far been "heavily skewed" to spending cuts.
The recommendations may rankle with some in the wake of Eurosceptic Ukip's victory in the European elections and Prime Minister David Cameron's assessment of the EU as "too big, too bossy, too interfering".