European Commission requires Member States to automatic interchange information about tax rulings.
European Commission today presented a package of fiscal transparency measures to tackle tax evasion by companies and harmful tax competition in the EU. An important part of this package is a proposal which requires Member States to exchange information automatically about their tax rulings.
“Everyone should have their fair share of taxes payable, multinationals as well as everyone else. This proposal for automatic exchange of information, the tax authorities will tax gaps or duplication between Member States better able to map. In the coming months we will set up concrete actions to fill these gaps or address duplication. We are determined to solidify our promises with real, credible and fair measures, “said Vice-President Valdis Dombrovskis, which is responsible for the euro and the social dialogue.
Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said:. “The tolerance for companies that do not want to pay their fair share of taxes and regimes that help them reach We need to restore the link between the place where companies actually make their profits and where they are taxed. This requires openness and cooperation by the Member States. That is what we want to achieve fiscal transparency measures in this package. ”
Currently Member States share very little information with each other about their tax rulings. They may not themselves judge whether a tax ruling may be of interest to another EU country. Consequently, Member States are often not aware of the existence of cross-border tax rulings issued elsewhere in the EU and may affect their own tax base. This lack of transparency on tax rulings is abused by some companies to artificially reduce their contribution to the tax.
To rectify this situation, the Commission proposes to eliminate this assessment and interpretation margin. Member States will be required to automatically exchange information on their tax rulings. The Commission proposes a strict timetable for this purpose: every three months, the national tax authorities, all other Member States should send a brief report on all cross-border tax rulings they have issued (push-component). Member States will then be able to request further information about specific rulings (pull-component).
Decision-making
The two legislative proposals in this package, the European Parliament and the Council for consultation will be submitted for approval. Member States should reach unanimous agreement by the end of 2015 on the proposal on the tax rulings, so that it can enter into force on January 1, 2016.
What follows?
Today’s package also includes a communication with a number of other initiatives to promote the pursuit of fiscal transparency in the EU. It involves the following initiatives:
Assessment of possible new transparency requirements for multinationals
Revision of the Code of Conduct for Business Taxation
Quantification of the extent of tax evasion and avoidance
Repeal of the Savings Directive
The next milestone is an action plan for the corporation, which will be presented before the summer. In this second action plan will focus on measures to make the corporation in the single market fairer and more efficient; drawing inter alia the common consolidated heffingsgrondslag for (CCCTB) again raised come and look at how new OESO/G20-acties to grondslaguitholling and winstverschuiving (“BEPS”) combat, can be integrated into action at EU level.
