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Preventing tax evasion and fraud: the scope for automatic exchange of information is extended
Padoan: “It marks the end of banking secrecy in the European Union”

CC Flickr - jack wilkinson

The Council adopted a directive that will help the member states to clamp down on tax evasion and fraud by extending the scope for the automatic exchange of information. The directive brings interest, dividends, gross proceeds from the sale of financial assets and other income, as well as account balances, within the scope of the automatic exchange of information. It accordingly revises directive 2011/16/EU on administrative cooperation in the field of direct taxation.

The dual aim is to prevent taxpayers from hiding capital abroad or assets on which tax is due, whilst also improving the efficiency of tax collection.

"The adoption of the revised directive on administrative cooperation is a crucial step forward in the fight against tax evasion," said Pier Carlo Padoan, minister of economy and finance of Italy and president of the Council. "It marks the end of banking secrecy in the European Union. We, EU member states, are leading by example in the international arena".

For more information: Council of the EU

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Last update: 09 December 2014