05 June 2006
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European Commission press release IP/06/697 dated 31 May 2006
EU against tax fraud
The European Commission wants to launch a debate on a European strategy to combat tax fraud. It notes that tax fraud is a growing problem and considers that the Member States cannot act effectively in isolation. It proposes a new Community approach to administrative co-operation with third countries and is prepared to engage in a broad discussion on the need to modify VAT systems.
The Commission's main proposals are to:
- improve administrative co-operation between Member States;
- strengthen current legislation regarding co-operation in the field of direct taxation and assistance in the recovery of taxes;
- improve risk management which would allow countries to be rapidly informed of the potential risks that particular companies may represent, especially when they start operating on their territory for the first time;
- create a permanent forum for administrative co-operation at Community level for all direct and indirect taxes.
The Commission also proposes discussing more specific measures such as:
- increasing tax declaration obligations for companies considered to represent a risk;
- reducing these obligations for companies which obtain an authorisation by entering into a partnership with the tax authorities;
- the use of standardised, high-performance information technology tools for the rapid exchange of information.
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