EU states agree on transparency rules to curb tax avoidance

European Union finance ministers on backed on March 13 2018 transparency measures requiring financial advisers, accountants, lawyers and banks to report “potentially aggressive tax planning arrangements” used by their clients.

The rules, which are due to come into force on July 1 2020, are part of an effort by the bloc to shut down corporate ploys to shift profits to low-tax countries.

Information about the schemes will be compiled in a centralized database and shared among the 28 EU member countries.

“If the authorities receive information about aggressive tax planning schemes before they are implemented, they will be able to close down loopholes before revenue is lost,” said Bulgarian Finance Minister Vladislav Goranov, whose country currently holds the rotating EU presidency.

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(Photo: Frank Schwichtenberg)