“Today we are proposing to hold responsible the go-betweens who create and sell tax avoidance schemes. Ultimately, this will result in greater tax revenues for member states,” Commission Vice-President Valdis Dombrovskis said.
Under the proposal, all cross-border tax plans that can result in financial losses for EU governments will have to be automatically reported to the tax authorities before they are used, the Commission said in a press release.
According to the Economic and Financial Affairs Commissioner, Pierre Moscovici, the legislation took aim at “the professionals who promote tax abuse”.
The key features that should set off the tax authorities’ alarm bells include “the use of losses to reduce tax liability and the use of special beneficial tax regimes or arrangements through countries that do not meet international good governance standards”.