EU to Increase Tax Information Shared

June 13, 2013 Taxation in EU

BelgiumBRUSSELS – The European Commission is calling for a revision of current tax information exchange agreements in order to increase the amount of taxpayer data which is automatically shared between tax authorities in the EU.

On June 12th the European Commission (EC) unveiled a new proposal to expand the scope of all the information exchange agreements currently signed between EU member states in order to create “…the most comprehensive system of automatic information exchange in the world.”

If the provisions set out in the proposal are accepted and implemented, each European country will be required to automatically share all information about national taxpayers’ “…dividends, capital gains, all other forms of financial income and account balances.”

The new rules would be implemented alongside already existing information exchange agreements, and will effectively mean that all of the countries in the EU would share as much information between each other as they have already pledged to do with the USA under the conditions of the Foreign Account Tax Compliance Act.

Explaining the potential significance of the changes, the Commissioner for Taxation of the EC Algirdas Šemeta said “…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… It will be another powerful weapon in our arsenal to lead a strong attack against tax evasion.”

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