EU and automatic exchange of tax information

On Tuesday 15 December the EC adopted new rules to make it easier for EU member states’ tax authorities to exchange financial information so that they can ensure full tax transparency and cooperation. The detailed rules mean that the practical arrangements are now in place for the entry into application of the amended Directive on Administrative Cooperation from 1 January 2016. From that date information will be exchanged between member states’ tax administrations on all relevant financial income including interest dividends and other similar types of income. Information on account balances sale proceeds from financial assets and income from certain insurance products is also part of the scope.

The agreed rules are consistent with the OECD global standard of exchange meaning that EU tax authorities will be able to use one single format for exchanging information both within and outside the EU. Member states have...