Directive (EU) 2018/822 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements

Author (Corporate)
Series Title
Series Details L139, 5.6.2018
Publication Date 05/06/2018
Content Type

Summary:

The European Commission adopted on 21 June 2017 a proposal increasing scrutiny around the activities of tax intermediaries. The proposal was submitted to the European Parliament and the EESC for consultation.

The Council of the European Union formally adopted the proposed draft law on 25 May 2018, after a political agreement in March 2018.

Further information:

The draft law takes the form of an amendment to the Directive for Administration Cooperation (DAC). It proposes an automatic exchange of information on tax planning scheme through a centralised database, giving member states early warning on new risks of avoidance and enabling them to take measures to block harmful arrangements.

The proposal was released in the context of media leaks such as the Panana Papers and the Paradise Papers, exposing how some intermediaries actively assist companies and individuals to escape taxation, usually through complex cross-border schemes.

It aims to reinforce the European Union's tax transparency framework, by shedding new light on the activities of intermediaries and the tax planning arrangements being used. It also ensured a new approach to implementing the recommended mandatory disclosure provisions in the OECD's Base Erosion and Profit Shifting (BEPS) project, as endorsed by the G20.

Source Link https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.139.01.0001.01.ENG
Related Link(s)
EUR-Lex: COM(2017)335: Proposal for a Council Directive amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2017:335:FIN
EUR-Lex: SWD(2017)236: Impact assessment http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2017:236:FIN
EUR-Lex: SWD(2017)237: Executive summary of the impact assessment http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2017:237:FIN
EESC: Opinion, January 2018: Disincentives to tax avoidance or evasion http://www.eesc.europa.eu/en/our-work/opinions-information-reports/opinions/disincentives-tax-avoidance-or-evasion
EurActiv, 21.06.17: Commission moves to tighten tax evasion rules http://www.euractiv.com/section/economy-jobs/news/commission-moves-to-tighten-tax-evasion-rules/
European Commission: New tax transparency rules for intermediaries [Q&A] http://europa.eu/rapid/press-release_MEMO-17-1677_en.htm
European Commission: Speech by Commissioner Pierre Moscovici at the press conference on the Commission's proposal on tax intermediaries http://europa.eu/rapid/press-release_SPEECH-17-1753_en.htm
The Irish Times, 21.06.17: New reporting rules for cross-border tax schemes announced https://www.irishtimes.com/business/economy/new-reporting-rules-for-cross-border-tax-schemes-announced-1.3128057
Legislative Train: Proposal for a Council Directive amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements http://www.europarl.europa.eu/legislative-train/theme-deeper-and-fairer-internal-market-with-a-strengthened-industrial-base-taxation/file-tax-transparency-for-intermediaries
EP: Legislative Observatory: Taxation: Mandatory automatic exchange of information in relation to reportable cross-border arrangements http://www.europarl.europa.eu/oeil-mobile/fiche-procedure/2017/0138(CNS)
European Commission: Press Release, 13.03.18: Commission welcomes adoption of far-reaching new transparency rules for tax advisers in the EU http://europa.eu/rapid/press-release_IP-18-1841_en.htm
European Commission: DG Taxation and Customs: Transparency for intermediaries https://ec.europa.eu/taxation_customs/business/company-tax/transparency-intermediaries
European Commission: Press Release, 21.06.17: Commission forges ahead on new transparency rules for tax planning intermediaries http://europa.eu/rapid/press-release_IP-17-1663_en.htm
Reuters, 13.03.18: Accountants face EU clamp-down on aggressive tax planning https://uk.reuters.com/article/idUKL8N1QU54N
Deutsche Welle, 13.03.18: EU states agree on transparency rules to curb tax avoidance http://p.dw.com/p/2uFhU
ICIJ: Blog, 14.03.18: ‘The world has changed’: Europe targets advisers, accountants, lawyers with new tax rules https://www.icij.org/blog/2018/03/world-changed-europe-targets-advisers-accounts-lawyers-new-tax-rules/
Council of the European Union: Press Release, 13.03.18: Corporate tax avoidance: Agreement reached on tax intermediaries http://www.consilium.europa.eu/en/press/press-releases/2018/03/13/corporate-tax-avoidance-agreement-reached-on-tax-intermediaries/
EP: EPRS: Plenary at a Glance, February 2018: Tax transparency for intermediaries http://www.europarl.europa.eu/RegData/etudes/ATAG/2018/614710/EPRS_ATA(2018)614710_EN.pdf
EP: EPRS: Briefing: EU legislation in Progress, July 2018: Tax transparency for intermediaries http://www.europarl.europa.eu/RegData/etudes/BRIE/2017/614634/EPRS_BRI(2017)614634_EN.pdf
Council of the European Union: Press Release, 25.05.18: Corporate tax avoidance: Transparency rules adopted for tax intermediaries http://www.consilium.europa.eu/en/press/press-releases/2018/05/25/corporate-tax-avoidance-transparency-rules-adopted-for-tax-intermediaries/
KPMG [Webcast]: Mandatory Disclosure Rules for Intermediaries – impact on financial services https://home.kpmg.com/xx/en/home/insights/2018/05/webcast-mandatory-disclosure-rules-for-intermediaries.html
KPMG: Insights, May 2018: EU disclosure requirements for certain cross border arrangements https://home.kpmg.com/uk/en/home/insights/2018/05/tmd-eu-disclosure-requirements-for-certain-cross-border-arrangements.html

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