ECOVIS Miškinis, Kvainauskas ir partneriai advokatu kontora
The EU member states’ need for mutual assistance in the field of taxation is growing rapidly in a globalized era. Increasing difficulty affects the functioning of taxation systems and entails double taxation, which itself incites tax fraud and tax evasion, while the powers of controls remain at national level.
Therefore, a single member state cannot manage its internal taxation system, especially as regards direct taxation, without receiving information from other member states. In order to increase administrative cooperation, a council directive 2011/16/EU (hereinafter – Directive) has been adopted. The new Directive provides:
- time limits for the provision of information.
- officials’ presence in administrative offices and participation in administrative inquiries as a form of administrative cooperation.
- possibility for simultaneous controls carried out on the same persons by two or more member states.
- limited refusal to provide information.
- exchange of information through standardized forms.
This Directive contains minimum rules and should therefore not affect member states’ rights to enter into wider cooperation. Member states shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive, with effect from Jan. 1, 2013.