Tax transparency: Commission welcomes landmark agreement on the automatic exchange of information on tax rulings

The Commission has welcomed yesterday’s unanimous agreement by Member States on the automatic exchange of information on cross-border tax rulings, just seven months after the Commission unveiled its ambitious proposal. EU Finance Ministers meeting in Luxembourg agreed to the new rules, which will lead to greater cooperation between Member States on tax matters and will act as a deterrent from using tax rulings as an instrument for tax abuse. Thanks to the agreement, they will now have access to the information they need to protect their tax bases and effectively target companies that do not pay their fair share of taxes. Following the announcement of the agreement, Jean-Claude Juncker, President of the European Commission, said: “I warmly welcome today’s agreement as a major step forward. The automatic exchange of information on tax rulings will provide national authorities with insight on aggressive tax planning. It marks a leap forward in our efforts to advance on tax coordination and tax harmonisation.” Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: “I see today’s agreement as an important signal that Member States are ready to deliver on our common goal of fair and effective taxation. The EU will continue to work to implement these transparency rules worldwide.”