EU Tax Administration & Compliance Bulletin 60

Printable Version

Forum on Tax Administration Publishes Global Reference Document on COVID-19 Tax Measures

A global reference document setting out the measures taken by tax administrations worldwide has been created by the Forum on Tax Administration, containing detail of all taxation and financial measures taken by governments around the world in response to the COVID-19 outbreak. The document will be updated on a regular basis and has been created in order to assist tax administrations in developing their own national tax measures responding to the COVID-19 crisis.

German Upcoming EU Presidency Tax Priorities: Return of the Financial Transaction Tax

Germany, who will hold the Presidency of the Council of the European Union from 1 July 2020 to 31 December, has significant tax priorities for its upcoming Presidency period. A German EU Presidency planning document seen by CFE indicates that the EU Financial Transaction Tax will be a main focus for the tax agenda of the Presidency. In addition, other specific taxation priorities include fair taxation of the digital economy, reducing tax evasion, simplification of taxation within the EU and increased cooperation between European Member States’ tax administrations.

Under the Croatian EU Presidency, the European Commission plans to launch an Action Plan on the fight against tax fraud, scheduled for 10 June, coinciding with the G7 Summit in the US (10-12 June) and the European Business Summit (11-12 June).

Eurogroup Agree on 500 Billion Euro COVID-19 Recovery Package

On 9 April, EU Finance Ministers agreed on a half-trillion Euro recovery package, to be administered by the European Stability Mechanism, which will provide targeted relief for EU economies in response to the COVID-19 outbreak. The package will provide for precautionary credit lines, an interim solidarity instrument to provide loans to Member States from the EU which aim to protect jobs and employees amidst the COVID-19 crisis. In addition, a pan-European guarantee fund will be implemented by the European Investment Bank, to support EU businesses, in particular SMEs.

A temporary Recovery Fund, which would aim to ensure economic recovery in Member States, as well as other technical aspects concerning the agreement, will be discussed further in a videoconference of the European Council which will take place on 23 April.

Forum on Tax Administration Provides Business Continuity Advice for Tax Administrations

The OECD’s Forum on Tax Administration, in collaboration with the Intra-European Organisation of Tax Administrations and the Inter-American Center of Taxation Administrations, has published a document setting out business continuity advice for tax administrations in the wake of the COVID-19 pandemic.

The document aims to unite tax administrations through virtual means concerning tax measures implemented to assist taxpayers, as well as to ensure the continuity of tax administration services and to alleviate potential cross-border tax issues.

Global Forum Transparency & Exchange of Information Peer Review Reports Released

The OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes has published peer reviews concerning the compliance of eight jurisdictions with the international standards for exchange of information and transparency. The peer reviews concern the jurisdictions of Barbados, Brunei Darussalam, Liberia, Macau (China), Peru, the Seychelles, Switzerland and Tunisia.

Of the jurisdictions being peer reviewed for the second time, the jurisdictions of Brunei Darussalam, Macau (China) and Switzerland received ratings of largely compliant. Barbados and the Seychelles were downgraded in their second peer review process from largely compliant to partially compliant. Following their first full review process, Liberia was rated partially compliant and Peru and Tunisia were rated as largely compliant. Further details concerning the ratings can be found here.

OECD Publish Comments on Draft Model Rules for Sharing & Gig Economy

The OECD has published comments received in response to a public consultation document inviting input on draft Model Rules for Reporting for Platform Operators with respect to Sellers in the Sharing and Gig Economy. The consultation document invited input on model rules which have been developed with the objective of tax administrations worldwide adopting a uniform set of rules concerning the reporting requirements for transactions and income of platform sellers. The rules have been developed to increase transparency and minimise compliance burdens for tax administrations and taxpayers, in properly recording and taxing activities carried out on digital platforms which may have been previous carried out via the informal cash economy.

EU Commission Considers Leniency for DAC6 Reporting Deadlines

The EU Commission is reportedly considering “a possible adjustment” for deadlines imposed by the EU Directive on mandatory disclosure rules (“DAC6”). This follows on from public requests made by financial and professional association organisations, seeking leniency in the enforcement of penalties and deadlines contained within the Directive due to the extraordinary consequences of the COVID-19 outbreak which have resulted in severe disruption across the European economy.

A spokesperson for the Commission reportedly stated that “any postponement should thus be of a limited duration and will not affect the start of application of the directive [on July 1, 2020],” the spokesperson said. “It follows that cross-border reportable arrangements made during any agreed deferral period would in any case have to be reported once the deferral period is terminated.”

European Commission Publishes Proposed Amendments to Union Customs Code

The European Commission has published a draft implementing regulation setting out proposed updates for rules on the Union Customs Code, required in order to adapt the rules for needs of industry, improve harmonisation of implementation of the Code across the EU, and to ensure security and customs controls are not compromised. A public consultation inviting input concerning the draft implementing regulation will now run until 28 May 2020. Those wishing to submit input can do so via the Have Your Say portal.


Source: Malta Institute of Taxation Click here and CFE Tax Advisors Europe Click Here

Please contact David Marinelli should you wish to discuss any matter relating to your Malta registered company.