On October 6, 2015 the finance ministers of the EU Member States have made a unanimous decision on the rules of automatic exchange of information on cross-border transactions.
Thus, the amendments to Directive 2011/16/EU are published and will come into force in 2016. This document is aimed at eliminating conflicts that might hinder the mandatory automatic exchange of information on cross-border transactions.
The updated Directive provides specification of information to be exchanged as currently existing document does not allow the tax authorities to obtain all the necessary information as well as to monitor and to prevent tax fraud. According to the terms of the Directive without amendments, Member States do not always get the data on cross-border tax transactions, which take place in other European Union countries that implies a potential threat to artificially reduce the tax liabilities by companies.
According to the Directive with amendments, Member States have to exchange tax information every six months. Also, the Directive will cover the decisions that were made over the last five years, the EU countries will be able to request more detailed information on specific decisions on transactions that took place during this period.
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