The European Commission has presented a package of tax transparency measures as part of its agenda to address corporate tax avoidance and harmful tax competition in the EU.
A key element of the tax transparency package is a proposal to introduce the automatic exchange of information between EU Member States on their tax rulings.
According to an EC release, corporate tax avoidance is thought to deprive EU Member States of billions of euros a year, and undermines fair burden-sharing among taxpayers and fair competition between businesses. Companies rely on the complexity of tax rules and the lack of cooperation between EU Member States to shift profits and minimize their taxes.
The tax transparency package aims to provide EU Member States with the information needed to protect their tax bases and effectively target companies that try to escape paying their fair share of taxes.
Read a March 2015 report prepared by KPMG’s EU Tax Centre and provided by the KPMG member firm in the Netherlands: EU proposes compulsory exchange of information on cross-border tax rulings