The European Commission has signed an amending protocol enhancing the existing tax cooperation agreement with Switzerland, part of EU efforts to fight against tax fraud and evasion.
Between 2015 and 2016, the EU signed and concluded agreements with Andorra, Liechtenstein, Monaco, San Marino and Switzerland which provide for the reciprocal automatic exchange of information on financial accounts between Member States’ tax administrations and those of the five jurisdictions concerned.
The update is seen as a necessary step to ensure further alignment with the EU Directive on Administrative Cooperation (DAC) and with OECD standards.
The update expands the automatic exchange of financial account information between the EU and Switzerland to include electronic money products and digital currencies,while providing for strengthened due diligence and reporting requirements.
The amending protocol establishes a new framework for cooperation between the EU and Switzerland on the recovery of claims in the field of value-added tax and commits the parties to explore mutual assistance in recovering other tax claims.
Since 2015, the EU has engaged in these exchanges, which are based on the OECD’s Common Reporting Standard, further promoting transparency and international tax cooperation. Recent updates to this standard necessitated the new amendments, which received unanimous Council approval. In addition, as requested by the Council, the existing agreement was further enhanced with the inclusion of provisions on the recovery of tax claimed.
Similar amending protocols with Andorra, Liechtenstein, Monaco and San Marino were signed last week. Adoption of those five protocols reinforces the EU’s leadership in ensuring fair and transparent tax practices globally, says the Commission.
Further information on the amended tax cooperation agreements
