Countering
Aggressive
Tax Planning
Public consultation concerning disincentives for
advisors and intermediaries
Brussels, 7 December 2016
International developments
• The Panama Papers leak of documents has highlighted
how certain providers of tax, financial and legal advice and
certain intermediaries appear to have actively helped their
clients to shift profit offshore.
• Already in 2015, the OECD issued a set of best
practices as regards the use and promotion of potentially
aggressive tax planning schemes (Final Report on BEPS
Action 12 - MDR)
• Certain EU Member States (UK, IE, PT) have put in place
a disclosure mechanism.
Developments in the EU
• May 2016 – the ECOFIN Council Conclusions
• 5 July 2016 - the European Commission's
communication on further measures to enhance
transparency and the fight against tax evasion and
avoidance
• 6 July 2016 - EP resolution
• 11 October 2016 – the ECOFIN Council conclusions on
tax transparency
• 10 November 2016 – launch of public consultation
BEPS Action 12 Report on
Mandatory Disclosure Rules
A series of recommendations about the design of
mandatory disclosure regimes (not a minimum standard),
including:
• Overview of mandatory disclosure (presents existing
regimes, which are either “transaction-based” or
“promoter-based”)
• Options for a model mandatory disclosure rules
(who has to report, thresholds & filters, general or
specific hallmarks, time frames, penalties)
• International tax schemes (specific focus)
• Information sharing (reference to compulsory
spontaneous exchange of information)
Public consultation
(launched on 10 November 2016)
Aim of public consultation is to gather views on:
• Whether there is a need for EU action
• The different options identified, in case EU action is
appropriate
• The key design features of a possible disclosure regime
• Any other comments…
Key objectives of a policy action
• Dissuade intermediaries and users of potentially
aggressive tax planning schemes from promoting and using
such schemes
• Ensure timely access of national tax authorities to
relevant information on such schemes
• Avoid distortions in the single market due to diverging
reporting requirements as regards such schemes so as to
ensure a level playing field amongst intermediaries
• Facilitate administrative cooperation between tax
authorities
• Improve taxpayer voluntary compliance by introducing
reassurances on the fairness of the system
Key elements
• What is a reportable scheme?
•
Definition – Hallmarks
• What should be in the scope?
•
Only cross-border schemes?
•
Which type of taxes should be covered?
• Which information has to be reported?
• Who has to report and to whom?
• When should the information be reported?
• Exchange of information or publication?
Possible options for policy action
• Option 0: No action at the EU level
• Option A: Encourage Member States to use currently
available exchange of information mechanisms
• Option B: Disclosure of information
• Option C: Disclosure and Exchange of information
• Option D: Disclosure (Option B) or Disclosure and
Exchange of Information (Option C) plus Publication
• Option E: EU Code of Conduct
No final decision on option yet
Public consultation
What is the timeline?
• 10 November 2016 until 16 February 2017
Who can reply?
All stakeholders
(i.e. citizens, businesses, experts, public administrations,
representative organisations and other interested stakeholders)
Where to find the questionnaire?
https://ec.europa.eu/taxation_customs/consultations-getinvolved/tax-consultations_en
Thank you!
• Contact: TAXUD–[email protected]
• Website: http://ec.europa.eu/taxation_customs/index_en