Highlights

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The EU is stepping up its fight against tax fraud. A new directive adopted by the Economic and Financial Affairs Council on 15 February will provide for a more straightforward exchange of information between member states.

In the single market, taxpayers can move easily from one country to another, the income of one taxpayer can often be earned in different member states, and cross-border transactions have become commonplace. It is therefore increasingly difficult for the tax authorities to correctly assess the taxes due.

The new rules, which will come into force in 2013, will allow member states to have a better view of the income their taxpayers receive in the EU. This will in turn facilitate the determination of taxes and help to fight tax fraud.

The directive will ensure that the OECD standard for the exchange of information on request is applied in the EU. In practice this means that a member state will not be able to refuse a request for information from another member state solely on the grounds of banking secrecy.

In 2015 the automatic exchange of information will be introduced for certain types of income and capital such as employment income and pensions, insofar as member states have that kind of data available.

The directive is part of a wider EU strategy to combat tax fraud. It applies to all taxes except VAT and excise duties, which are already covered by other Union legislation.

More information:
Directive on administrative cooperation in the field of taxation (pdf) + Cor1 (pdf)
Press release (pdf)
Press conference webcast
EU policies: taxation (on Europa portal)
OECD tax treaties