The European Commission has carried out the first evaluation of the administrative cooperation directive since its introduction in 2013.
On the basis of very limited available evidence, the report concludes that the directive has been effective ‘to some extent’ in helping tax authorities combat fraud, evasion and avoidance. It has delivered value for money overall, with costs to member states and financial institutions estimated at around €90m and €140m respectively, while the benefits are cautiously estimated at around €620m.
The directive provides the basis for the exchange of information on financial accounts and on the tax rulings that member states issue to multinational companies. In 2017, member states exchanged information on almost 18,000 tax rulings.
The European Commission has carried out the first evaluation of the administrative cooperation directive since its introduction in 2013.
On the basis of very limited available evidence, the report concludes that the directive has been effective ‘to some extent’ in helping tax authorities combat fraud, evasion and avoidance. It has delivered value for money overall, with costs to member states and financial institutions estimated at around €90m and €140m respectively, while the benefits are cautiously estimated at around €620m.
The directive provides the basis for the exchange of information on financial accounts and on the tax rulings that member states issue to multinational companies. In 2017, member states exchanged information on almost 18,000 tax rulings.
