During a recent meeting of the European Council of Finance Ministers, Luxembourg
and Austria – two countries with a long tradition of banking secrecy –
agreed to a draft directive aimed at strengthening mutual assistance between
member states in the recovery of taxes.
The draft directive is aimed at better fulfilling the member states' needs
with regard to the recovery of taxes, providing an overhaul of Directive 76/308/EEC
(codified by Directive 2008/55/EC), on the basis of which the member states
have engaged in mutual assistance since 1976 aimed at clamping down on tax evasion.
The draft directive is intended to provide for an improved assistance system,
with rules that are easier to apply, as regards information held by banks and
other financial institutions, and provide for more flexible conditions for requesting
assistance, requiring the spontaneous exchange of information.
According to Austria’s Vice Chancellor and Finance Minister, Josef Pröll,
the agreement is a clear sign that both Austria and Luxembourg are prepared
to find solutions to key issues.
Previously, Pröll had argued that the tax recovery directive should
be examined alongside the reform of the EU Savings Tax Directive and the Mutual
Assistance Directive. Defending his decision, however, Pröll revealed that
he did not want to unnecessarily delay progress.
Under the new draft directive, all EU member states must provide information in accordance with Article 26 of the Organization for Economic Cooperation and
Development’s (OECD's) model agreement on tax information exchange, Pröll
explained. Austria agreed to conform to the OECD standard last year, he remarked.
Pröll gave his assurances that Austria is also prepared to agree to other
standards. The Spanish EU presidency is endeavoring to reach an agreement on
the tax package in the first half of 2010.
Austria and Luxembourg have announced, however, that they are only willing
to accept the amended EU Savings Tax Directive provided that Switzerland, Andorra,
Liechtenstein, Monaco and San Marino apply the same or similar rules on transparency.
Indeed, both EU member states intend to maintain their banking secrecy until
Switzerland agrees to participate in an automatic exchange of information.
The draft directive will be adopted at a forthcoming Council meeting, once
the European Parliament's opinion is available.
LAWANDTAX-NEWS.COM
