The European Commission has proposed extending the requirements of the automatic exchange of information between EU member states, stressing that it will go further than FATCA in tackling tax evasion.
Dividends, capital gains, all other forms of financial income and account balances will be added to the list of elements that are subject to automatic information exchange within the EU.
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Commissioner for taxation, Algirdas Semeta, said: "With today’s proposal, Member States will be better equipped to assess and collect the taxes they are due, while the EU will be well positioned to push for higher standards of tax good governance globally."
These measures will take effect from 1 January 2015 by being added to the existing savings tax directive, which already ensure that governments pass tax relevant data of non-resident individuals to the authorities where they reside.
In December 2012, the European Commission presented an action plan for a more effective EU response to tax evasion and avoidance.
On 15 Apr 2013, PBI reported that around one trillion euro is lost in EU member states to tax evasion and tax avoidance every year, according to the EU Council.
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By GlobalDataEurope moved closer to lifting banking secrecy on 22 May after Austria revealed it was ready to share data on foreign depositors by the end of 2013, in a meeting of EU leaders to discuss fighting tax fraud by lifting bank secrecy.
In May 2013, ECOFIN Council also welcomed the action plan and requested the extension of automatic exchange of information at EU and global level.
British prime minister David Cameron also wrote to the leaders of Britain’s offshore tax havens calling for transparency and invited the Caribbean territories to London before the upcoming G8 summit in Northern Ireland next week, but, on 12 June, the Bermuda premier Craig Cannonier said Britain’s overseas territories will not sign up to an international convention ahead of the summit.
