Ethics and governance in the European Financial centers

In the framework of its strategy to better combat tax evasion and fraud (IP/06/697), the European Commission yesterday adopted two proposals for new Directives aimed at improving mutual assistance between Member States' tax authorities in the assessment and the recovery of taxes. One of the key elements of the proposals is that Member States would no longer be able to invoke bank secrecy in order to refuse cross border co-operation.

Commissioner for Taxation and Customs, László Kovács, said: "In a globalised world, where tax evaders and fraudsters take advantage of the different limitations on national tax administrations, efficient cooperation and mutual assistance between tax administrations is essential in better combating tax fraud. Improved transparency, based on quick and simple information exchange mechanisms, is therefore crucial. In particular, it is unacceptable that bank secrecy in one Member State can be allowed to constitute an obstacle to the correct assessment by the tax authorities of another Member State of the amount of taxes due by one of its resident taxpayers."



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