|Author (Corporate)||Council of the European Union|
|Series Title||Official Journal of the European Union|
|Series Details||L 104, Pages 1-26|
|Content Type||Blog & Commentary, Legislation, News, Policy-making|
Council Direction (EU) 2021/514 - adopted by the Council of the European Union on 22 March 2021 - setting out a revision of the Directive on administrative cooperation (DAC7).
Directive 2011/16/EU lays down the rules and procedures that national authorities in Member States of the European Union (EU) must apply when exchanging information on tax matters.
The purpose of the proposed amendments is to extend the EU tax transparency rules to digital platforms. Member States are to automatically exchange information on income generated by sellers on digital platforms. Revised rules are to allow national authorities to identify situation where tax should be paid, and are to reduce the administrative burden placed on platforms, who have to deal with several, different national reporting requirements.
The need for this proposal arose from the outcome of different assessments, which highlighted scope for improvement in matters relating to the exchange of information and administrative cooperation. They also demonstrated that the rule for using simultaneous controls and allowing the presence of officials of a Member States during an enquiry in another Member State lacked a legal base in some of the national systems.
This draft law was adopted by the European Commission on 15 July 2020, as part of a Tax Package alongside an Action Plan for fair and simple taxation supporting economic recovery in the EU. The Council of the European Union endorsed a compromise text concerning this proposal on 1 December. The Act was published in the Official Journal on 25 March 2021.
|Subject Tags||Fiscal Regimes, Tax Systems|
|International Organisations||European Union [EU]|