European Commission wants intermediaries to inform them about constructions for tax avoidance they create for their clients.
Countries often lose tax revenue due to mostly transnational fiscal constructions that tax advisors, accountants, banks and lawyers (intermediaries) create for their clients. To increase transparency and enable cashing of those taxes by the tax authorities, the European Commission proposes that as of January 1, 2019, these intermediaries will be obliged to provide information on those constructions before they are implemented by their clients. The documents to be provided will be made accessible for the tax authorities in a EU database. The rules are comprehensive: they apply to all intermediaries, all constructions and all countries. Intermediaries that do not follow-up on these new rules will be sanctioned. The proposal will be offered for approval to the European Parliament and the Council.