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EU finance ministers have agreed a proposal aimed at fighting tax evasion and tax fraud.
The proposal to revise the regulation on administrative co-operation in VAT sets out a series of measures to extend and reinforce the exchange of information and co-operation between tax authorities.
These include a common approach to the registration and deregistration process of VAT taxable persons, a precise definition on the information to be exchanged between member states, and increased security on the information given to taxpayers seeking to confirm VAT numbers.
A key element of the proposal is a legal base to establish Eurofisc, a network for closer co-operation and faster information exchange between member states to detect fraudsters.
The ECOFIN Council has also adopted draft conclusions from a report by the Code of Conduct Group on Business Taxation, which was set up in 1997 to identify and tackle harmful tax measures that can adversely affect other member states’ corporate tax base.
Through this group, member states agree not only to introduce harmful tax practices but also to undo existing harmful practices.
On the basis of the group’s latest report, the council has called on the EC to start discussions with Switzerland and Liechtenstein with a view to encouraging them to apply the principles of the code of conduct.
