On 8 December, the EU Council adopted a directive aimed at improving transparency on tax rulings given by member states to companies.
On 8 December, the EU Council adopted a directive aimed at improving transparency on tax rulings given by member states to companies. The directive is one of a number of initiatives aimed at preventing corporate tax avoidance and requires member states to exchange information automatically on advance cross-border tax rulings, as well as advance pricing arrangements. Member states receiving the information will be able to request further information where appropriate. The Commission will be able to develop a secure central directory to store the information which will be accessible to all member states and, to the extent that it is required for monitoring the correct implementation of the directive, to the Commission. A tax ruling is an assurance that a tax authority gives to a taxpayer on how certain aspects of taxation will be dealt with in that specific case. An advance pricing arrangement is a type of tax ruling, issued by a tax authority to determine the method and other relevant details of pricing to be applied to a transfer of goods or services between companies.
The new rules will be applied from 1 January 2017. In the meantime, existing obligations for member states to exchange information will stay in place. See www.bit.ly/1XS9DRU.
On 8 December, the EU Council adopted a directive aimed at improving transparency on tax rulings given by member states to companies.
On 8 December, the EU Council adopted a directive aimed at improving transparency on tax rulings given by member states to companies. The directive is one of a number of initiatives aimed at preventing corporate tax avoidance and requires member states to exchange information automatically on advance cross-border tax rulings, as well as advance pricing arrangements. Member states receiving the information will be able to request further information where appropriate. The Commission will be able to develop a secure central directory to store the information which will be accessible to all member states and, to the extent that it is required for monitoring the correct implementation of the directive, to the Commission. A tax ruling is an assurance that a tax authority gives to a taxpayer on how certain aspects of taxation will be dealt with in that specific case. An advance pricing arrangement is a type of tax ruling, issued by a tax authority to determine the method and other relevant details of pricing to be applied to a transfer of goods or services between companies.
The new rules will be applied from 1 January 2017. In the meantime, existing obligations for member states to exchange information will stay in place. See www.bit.ly/1XS9DRU.
