G8 to discuss tax evasion
The European Commission is seeking to up the fight against tax
evasion within the European Union.
The Commission wants governments to automatically exchange
information on a wide range of financial income earned in their
countries by non-residents.
This would give the EU the most comprehensive such system in the
world, the EU supranational body said.
Next week, the G8 major nations will meet to discuss global measures
against tax evasion and money laundering. The EU said it would push at
the meeting in Northern Ireland for a similar system of information
sharing to be rolled out worldwide, which it said would help developing
countries collect more tax.
The Commission plan, which will cover all income including dividends
and capital gains, will build on the existing exchange of non-residents'
saving details, which is due to be strengthened by the end of the year.
EU Taxation Commissioner Algirdas Semeta said, "With today's
proposal, member states will be better equipped to assess and collect
the taxes that are due, while the EU will be well positioned to push for
higher standards of tax good governance globally.
"It will be another powerful weapon in our arsenal to lead a strong
attack against tax evasion."
Tax evasion is the illegal concealment of income and other taxable
assets, typically by moving money to bank accounts outside the
jurisdiction and without the knowledge of the country where the tax
should be due.
The automatic exchange of information means that member states
collect data on income earned in their country by non-residents and send
it to the authorities in the individual's home country so it can be
taxed correctly.
The exchange takes place through a secure IT network so that the EU's
data protection rules are fully respected.
A plan for exchange of information on income from employment,
directors' fees, life insurance, pensions and property is due to start
on January 1, 2015.
BBC |