European Union finance ministers adopted unanimously a proposal requiring governments to share information on tax rulings, in an effort to stop corporate tax evasion by multinationals, during a meeting in Luxembourg.
According to the political agreement achieved in today’s Ecofin, which will come into effect in 2017, countries will be obliged to exchange information on tax agreements made with corporations so that they cannot avoid taxation in the countries where they have opened offices. The new rules will have a retroactive effect to include deals going back five years.
Commissioner for Economic and Financial Affairs, Pierre Moscovici, expressed his satisfaction with the agreement saying it will provide fairer competition. “This is a major step in combating aggressive tax planning, creating greater transparency in corporate taxation and in providing fairer competition for both businesses and consumers. 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,” he said, adding that the EU will work to implement these transparency rules worldwide.