Implementing Directive 2011/16/EU On Administrative Cooperation In Taxation

On 7 June 2012, the Ministry of Finance published a draft for amendment of the Tax and Social Insurance Procedure Code to implement Directive 2011/16/EU (the "Directive") into the national legislation.

The Directive aims at facilitating and boosting the cooperation between the EU revenue authorities and reducing the time for data exchange in the area of direct taxation. One of the main goals is to decrease the possibilities for tax evasion/avoidance schemes within the EU.

Instead of listing the specific taxes subject to the cooperation procedure, as structured now, the draft covers any direct taxes, including local taxes, due in the EU Member States. Public liabilities such as indirect taxes, customs and excise duties, and the social insurance contributions are explicitly excluded from the scope of the new rules.