The European Commission today announced next steps in its campaign to boost tax transparency in order to address tax evasion and avoidance in the EU, in light of issues highlighted with public release of the “Panama papers.”
As noted in the EC release, the “Panama papers” exposed how secret companies and accounts can be used to hide income and assets offshore—often for tax evasion and other illicit purposes. To address gaps in the tax framework in order to prevent tax abuse and illicit financial flows, the EC presented a communication setting out priorities and the following key actions:
The proposal for access to information for tax authorities (an amendment to the Directive on Administrative Cooperation for Taxation) will be submitted to the European Parliament for consultation and to the Council for adoption. Proposed amendments to the Anti-Money Laundering Directive are expected to be adopted by the European Parliament and the Council as co-legislators. The EC stated it will take forward the measures set out in the communication over the coming months and will determine the most appropriate EU-level action to take on each of them.
Read a July 2016 report [PDF 127 KB] prepared by KPMG’s EU Tax Centre
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