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Advances in administrative cooperation in the field of taxation [EU Legislation in Progress]

Written by Miroslava Karaboytcheva (2nd edition, updated on 08.04.2021),

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The digitalisation of the economy opens the door to new cross-border economic activities that makes it possible to under-report income and under-pay tax. It also presents new challenges for tax administrations, already faced with limited access to information at the national level. Hence, in July 2020 the Commission proposed to amend the provisions on information exchange and administrative cooperation and to include the automatic exchange of data on information declared by digital platform operators in their scope. The goal is to ensure that sellers on digital platforms pay their fair share of taxes, align EU countries to the digital economy, and close the gaps for tax evasion and avoidance. Right now, having secure tax revenues is vital for the provision of support to the people and businesses most in need.

The Parliament’s ECON committee adopted its report on the proposal for an amended Directive on Administrative Cooperation (DAC7) on 4 February 2021. The Parliament adopted its opinion on the Commission’s proposal on 10 March 2021. The Council had reached agreement on the proposal on 1 December 2020, and formally adopted it on 22 March 2021. Member States have to transpose the directive’s provisions and apply them as of 1 January 2023, except for the provisions on joint audits which will apply from 2024.

Complete version

Proposal for a Council Directive amending Directive 2011/16/EU on administrative cooperation in the field of taxation
Committee responsible: Economic and Monetary Affairs (ECON) COM(2020) 314 final
15.7.2020
Rapporteur: Sven Giegold (Greens/EFA, Germany) 2020/0148(CNS)
Shadow rapporteurs: Lídia Pereira (EPP, Portugal)
Aurore Lalucq (S&D, France)
Monica Semedo (Renew, Luxembourg)
Gunnar Beck (ID, Germany)
Roberts Zīle (ECR, Latvia)
Dimitrios Papadimoulis (The Left, Greece)
Consultation procedure (CNS) – Parliament adopts a non-binding opinion only
Procedure completed. Council Directive (EU) 2021/514
OJ L 104, 25.3.2021, pp. 1–26.

timeline 7 steps finished - adoption by council

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