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EU countries agree to transparency rules for tax advisors, planners

Europe
13.03.2018
By our dpa-correspondent and Europe Online    auf Facebook posten  Auf Twitter posten  
Brussels (dpa) - European Union member states have agreed to impose new transparency rules in an effort to crack down on cross-border corporate tax avoidance within the bloc, requiring tax professionals to report "potentially agressive" tax planning schemes.

EU finance ministers reached an agreement on Tuesday on putting new reporting requirements on tax planning intermediaries - such as tax advisors, accountants and lawyers - in an effort to stop "aggressive tax planning," which usually involve complicated cross-border schemes.

Under the new rules, which will come into effect on July 1, 2020, intermediaries will have to report schemes that might help companies evade taxes. Countries will share the information in a centralized database.

Tax planning professionals who don‘t comply with the transparency measures will be subject to penalties.

"If the authorities receive information about aggressive tax planning schemes before they are implemented, they will be able to close down loopholes before revenue is lost," said Bulgarian Finance Minister Vladislav Goranov, whose country currently holds the rotating EU presidency.

 

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