| Author (Corporate) | Council of the European Union |
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| Series Title | Official Journal of the European Union |
| Series Details | L 265 |
| Publication Date | 14/10/2016 |
| Content Type | Legislation |
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Summary: Council Directive of 10 October 2017 laying down rules on a mechanism to resolve disputes between Member States arising from the interpretation and application of agreements and conventions that provide for the elimination of double taxation of income and capital. Further information: The fight against tax evasion, tax avoidance and aggressive tax planning was made a key priority by the European Commission in its agenda. In this context, it became essential to develop a robust response system against external threats to Member States' tax bases and in favour of fair taxation for EU citizens and businesses. At the same time, the importance of tax certainty and efficiency in promoting investment and building a competitive economy has been acknowledged. Double taxation was seen as a relevant problem for businesses operating across borders. Analysis of existing mechanisms in place for the resolution of double taxation disputes - the Mutual Agreement Procedures (MAPs), foreseen in Double Taxation Conventions (DTCs) and in the Union Arbitration Convention - highlighted cases that were prevented from entering those mechanisms, that were not covered by the scope of the Convention or the DTCs, that got stuck without the taxpayer being informed or were not resolved at all. The complexity and risks of the global tax environment, the need to improve access to those mechanisms, as well as coverage, timeliness and conclusiveness, called for a review of double taxation mechanisms. The Directive, proposed by the European Commission on 25 October 2016 as part of a package of legislative measures on corporate taxation, builds on the Union Arbitration Convention and broadens its scope to areas which were not previously covered, and adds targeted enforcement blocks. The Council of the European Union adopted its negotiating position on 23 May 2017, while the European Parliament's Opinion on the proposal was approved on 6 July. The Directive was formally adopted by the Council on 10 October and transposition was required to be concluded by 30 June 2019. |
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| Source Link | https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2017.265.01.0001.01.ENG |
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| Subject Categories | Taxation |
| Keywords | Tax Avoidance | Fraud | Evasion |
| International Organisations | European Union [EU] |
