Brussels, 28/04/2009 (Agence Europe) - The European Commission is hoping to use the impetus provided by the G20 summit early in April in London to promote good tax governance within the European Union and in EU relations with third countries (see EUROPE 9890). Good governance in the tax area should promote transparency, the exchange of information and fair tax competition. The Commission takes the view that swift adoption of the legislative proposals on the table and increased coordination of national measures would allow the EU to have greater influence outside its borders when it comes to generalising the principles of good tax governance. Speaking on Tuesday 28 April, Taxation Commissioner László Kovács said he was hoping for “unanimous support of our proposals by member states during the June Ecofin Council”.
In February 2009, the Commission presented a legislative proposal amending Directive 77/799/EEC on mutual assistance (EUROPE 9831). Two elements are suggested - elements that it considers essential for the strengthening of EU international action to combat fraud and tax evasion. These are: - a most favoured nation clause which makes it an obligation for member states to offer other EU countries a level of cooperation equal to the highest level of cooperation offered to a third country; - and prohibition for member states to invoke the banking secret to justify a refusal to communicate information relating to a taxpayer to the latter's member state of residency.
The Commission points out that it has suggested extending coverage of Directive 2003/48/EC on savings taxation to the legal structures (e.g. foundations) which benefit from interest payments and to a number of innovative financial products (e.g. life insurance contracts) that can be assimilated to savings (see EUROPE 9774). Should the withholding mechanism applied by Austria, Belgium (until 2010) and Luxembourg in order to remain silent on the identity of non-residents with savings on their territory be abolished? The Commission has not suggested this should be the case and Mr Kovács has told MEPs that fixing a buffer date could delay unanimous adoption of the proposal by Council. The savings tax directive provides for the above three member states (over 10 EU-dependent territories) to participate in the automatic information exchange once the last agreement on information exchange takes effect at a request signed by the EU and five third countries (Andorra, Liechtenstein, Monaco, San Marino, Switzerland), which implement measures equivalent to Directive 2003/48/EC. The impetus provided by the G20 has compelled these countries to undertake to respect OECD norms on the exchange of tax information. “It is important to encourage this increased return to information exchange by the third countries concerned so that the directive may attain its general objective”, the Commission considers. The Council may grant it a brief to negotiate with theses countries in order to include the commitments taken in agreements linking them to the EU. Formal negotiations on savings taxation may be launched with Singapore, Hong Kong and Macao.
In its relations with third countries, the EU is expected to promote good taxation governance. This means the inclusion of specific clauses in general agreements signed with its partners. During finalisation, the EU/Liechtenstein anti-fraud agreement in the field of direct and indirect taxation could constitute a model, as the Council has asked the Commission to integrate information exchange into it on request (see EUROPE 9838). Is it, moreover, appropriate to directly conclude agreements at EU level on exchange of information on request with jurisdictions that have taken the commitment to comply with OECD norms? Yes, the Commission says in answer to this question, when a non-European jurisdiction does not have specific bilateral agreements with member states. Agreements at EU level would speed up implementation of commitments taken by some countries, while attributing a greater role to the Commission. (M.B./transl.jl)