Member States' ambassadors to the EU (Coreper) are expected to discuss draft EU Council conclusions on “the future evolution of administrative cooperation in the field of taxation in the EU” on Wednesday 20 May.
The draft text, dated 14 May, a copy of which has been seen by EUROPE, recognises the need for further revisions of the 2011 DAC Directive on administrative cooperation between tax authorities and sets out Member States' expectations.
“Efforts to improve administrative co-operation with the objective to fight tax fraud and tax evasion are particularly relevant in the context of the need for recovery from the crisis caused by the Covid-19 pandemic”, it says.
The European Commission has announced that this summer it will present a package of tax initiatives to help EU countries and companies in overcoming the crisis (see EUROPE 12478/39). Initially scheduled for 10 June, this package of measures has now been postponed to 15 July, according to a provisional timetable.
As well as to an action plan on combating tax fraud and tax evasion, the European Commission should present a proposal for a Directive ('DAC 7'), which will amend the 2011 Directive. This is to strengthen the exchange of information and, in particular, to promote the direct exchange of data held by digital platforms and the tax authorities (see EUROPE 12440/20).
The draft EU Council text rightly stresses the need to take into account fiscal challenges that arise from these new business models.
A number of Member States have already started to apply measures in their national law as regards the reporting of income (revenue) generated through digital platforms. An amendment to the directive should therefore take the opportunity to establish “a common standard at EU level” for the reporting and tax information exchange mechanisms in this area, the text emphasises.
Any new measures taken at EU level in this area should also aim to create and maintain a “level playing field” between EU and non-EU-based digital platforms through which revenues that are subject to taxation in Member States are generated, he said.
Another shortcoming that the EU Council would like to see resolved is the lack of a common procedure in the event of a breach of personal data protection.
They have also asked the European Commission to analyse any possibilities for improving interoperability between the Directive on the exchange of tax information and the 2015 Directive on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing. (Original version in French by Marion Fontana)