EC adopts directive over tax fraud
The European Council has adopted a directive over exchanging information on savings incomes in a bid to clamp down on tax fraud and evasion
The directive will strengthen EU rules over the exchange of information on savings incomes and help member states to share details and information more easily.
Directive 2003/48/EC will require member states to exchange information automatically so as to enable interest payments made in one member state to residents of other member states to be taxed in accordance with the laws of the state of tax residence.
The scope now covers new types of savings income and products that generate interest or equivalent income, including life insurance contracts and a broader coverage of investment funds.
The EC says tax authorities will be required to take steps to identify who is benefiting from interest payments.
Member states will have until 1 January 2016 to comply with the directive.
At the end of 2012, the European Commission launched a plan to tackle evasion and avoidance, saying more than one trillion euros a year were lost across the EU due to tax fraud.