European Commission unveils tougher rules on automatic exchange of tax information
International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

European Commission unveils tougher rules on automatic exchange of tax information

Tax authorities within the EU will have to comply with much more extensive rules on the automatic exchange of tax information, if member states adopt a European Commission proposal unveiled today.

The change would bring the EU closer to its own version of the Foreign Account Tax Compliance Act (FATCA).

The move would mean that the Administrative Cooperation Directive, which is due to come into force on January 1 2015, would be revised to include dividends, capital gains, all other forms of financial income and account balances. As of now, the Directive will require the automatic exchange of tax information related to employment, directors' fees, life insurance, pensions and property.

"With today's proposal, member states will be better equipped to assess and collect the taxes they are due, while the EU will be well positioned to push for higher standards of tax good governance globally,” Algirdas Semeta, the EU’s tax commissioner said today during a press conference at which he presented the proposal. “It will be another powerful weapon in our arsenal to lead a strong attack against tax evasion."

Member states already exchange other types of tax information under the Savings Tax Directive, which requires them to collect data on the savings of non-resident individuals, and automatically provide this data to the tax authorities where those individuals reside. Member states have committed to adopting a revised, stricter version of this directive before the end of the year.

The Commission said that today's proposal, if adopted, along with the two directives, would mean that member states would share as much information among themselves as they have committed to doing with the US under FATCA.


Semeta said Michel Barnier, the EU commissioner for the single market, would be introducing proposals on improving companies' transparency soon.


more across site & bottom lb ros

More from across our site

The reported warning follows EY accumulating extra debt to deal with the costs of its failed Project Everest
Law firms that pay close attention to their client relationships are more likely to win repeat work, according to a survey of nearly 29,000 in-house counsel
Paul Griggs, the firm’s inbound US senior partner, will reverse a move by the incumbent leader; in other news, RSM has announced its new CEO
The EMEA research period is open until May 31
Luis Coronado suggests companies should embrace technology to assist with TP data reporting, as the ‘big four’ firm unveils a TP survey of over 1,000 professionals
The proposed matrix will help revenue officers track intra-company transactions from multinationals
The full list of finalists has been revealed and the winners will be presented on June 20 at the Metropolitan Club in New York
The ‘big four’ firm has threatened to legally pursue those behind the letter, which has been circulating on social media
The guidelines have been established in the wake of multiple tax scandals and controversies that have rocked the accounting profession
KPMG Netherlands’ former head of assurance also received a permanent bar and $150,000 fine; in other news, asset management firm BlackRock lost a $13.5bn UK tax appeal
Gift this article