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New regulations on exchange of tax information

EU Directive on

administrative cooperation

The European Union Council adopted on 9.12.2014 a new Directive 2014/107/EU amending the Directive 2011/16/EU regarding mandatory automatic exchange of information in the eld of taxation (so called ‘Directive on administrative cooperation’).

Under the automatic information exchange system, the Member States collect data on income earned in their territory by non-resident individuals and automatically transmit the collected data to the authorities where the individuals reside.

The revised directive expands the scope of the automatic exchange of tax information to include interest, dividends, and other income as well as account balances and sales proceeds from nancial assets (also called ‘European FATCA’; respective press release of the Council: http://eur-lex.europa.eu/legal-content/EN/ TXT/?uri=CELEX:32014L0107 )

The Member States will start exchanging information automatically under the revised directive for the rst time by the end of September 2017 (simultaneously with the automatic data exchange under the OECD convention; see further below).

The deadline for Member States to adopt local legislation consistent with the revised Directive is 31 December 2015.

It should be noted that in respect of the following ve categories of income:

- employment income;
- directors’ fees;
- life insurance products not covered by

other Directives;
- pensions;
- ownership of and income from immovable

property,

the EU Member States start the automatic exchange of information, if available, regarding the taxable periods from 1.01.2014 onwards (i.e. the rst intended automatic exchange should take place in 2015).

source:
https://www.pwc.com/ee/en/insights/assets/maksuteave/pwc_maksuteade_nr2_veebruar2015_eng.pdf
 
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Reactions: JohnLocke
But it says nothing about corporate accounts only the accounts "by non-resident individuals" so assuming that if we stay behind a corporation i.e. Belize or Seychelles company no reporting will take place?

No, unfortunately even the details of the corporations can get reported if it's determined that you are the ultimate controller.

On the second page on this document, you'll see:

"Reportable accounts include accounts held by individuals and entities (which includes trusts and foundations), and the standard includes a requirement to look through passive entities to report on the individuals that ultimately control these entities"

I would be surprised if "entity" didn't include offshore corporations.

While the directive doesn't specifically mention the keywords AEOI (but does mention the phrase "automatic exchange of information"), I strongly suspect this directive was written simply to enable OECD's AEOI.
 

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