Communication on EU anti-tax avoidance requirements on financing and investment operations

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Series Details (2018) 1756
Publication Date 21/03/2018
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Further information:

This Communication provides guidance on the implementation of requirements against tax avoidance in EU legislation governing financing and investment operations as well as information on how EU partners should assess projects that involve entities in jurisdictions listed by the European Union as non-cooperative for tax purposes. The Commission also calls for its Implementing Partners to review their internal policies on non-cooperative jurisdictions in order to ensure that these policies reflect the latest EU and international developments in the areas of tax avoidance and fair taxation.

The Guidelines were seen as the first steo in stopping the transit of EU funds through non-cooperative tax jurisdictions. They should guarantee in particular that EU external development and investment funds cannot be channelled or transited through entities in countries on the EU's common list.

Background information:

Since the Commission's Communication on an External strategy for Effective Taxation in January 2016, four legal acts concerning the use of EU funds by implementing partners contain the requirement that EU funds do not support projects contributing to tax avoidance.

In addition to the EU provisions, the Commission has encouraged Member States to agree on coordinated sanctions to apply at national level against the listed jurisdictions. Member States agreed on a set of countermeasures which they can choose to apply against the listed countries, including increased monitoring and audits, withholding taxes, special documentation requirements and anti-abuse provisions.

The EU's list of non-cooperative jurisdictions in taxation matters is intended to promote good governance in taxation worldwide. The initial list was published in December 2017 and its revision is continuous.

The European Commission released on 21 March 2018 a set of requirements on financing and investment operations to avoid their transit through non-cooperative tax jurisdictions.

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Related Link(s)
European Commission: C(2018)1756: Communication from the Commission on new requirements against tax avoidance in EU legislation governing in particular financing and investment operations
European Commission: Press Release, 21.03.18: Commission puts in place first EU counter-measures on listed non-cooperative tax jurisdictions

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