ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(76)119
Vol.1976/0039

Disclaimer
Conformément aurèglement(CEE,Euratom)n°354/83duConseildu1erfévrier1983
concernantl'ouvertureaupublicdesarchiveshistoriquesdelaCommunauté économique
européenneetdelaCommunautéeuropéennedel'énergieatomique(JOL43du15.2.1983,
p.1),telquemodifiéparlerèglement(CE,Euratom)n°1700/2003du22septembre2003
(JOL243du27.9.2003,p.1),cedossierestouvertaupublic.Lecaséchéant,lesdocuments
classifiésprésentsdanscedossierontétédéclassifiésconformément àl'article5dudit
règlement.
InaccordancewithCouncilRegulation(EEC,Euratom)No354/83of1February1983
concerningtheopeningtothepublicofthehistoricalarchivesoftheEuropeanEconomic
CommunityandtheEuropeanAtomicEnergyCommunity(OJL43,15.2.1983,p.1),as
amendedbyRegulation(EC,Euratom)No1700/2003of22September2003(OJL243,
27.9.2003,p.1),thisfileisopentothepublic.Wherenecessary,classifieddocumentsinthis
filehavebeendeclassified inconformitywithArticle5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung(EWG,Euratom)Nr.354/83desRatesvom1.
Februar1983überdieFreigabederhistorischen ArchivederEuropäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI.L43vom15.2.1983,
S.1),geändertdurchdieVerordnung(EG,Euratom)Nr.1700/2003vom22.September2003
(ABI.L243vom27.9.2003,S.1),istdieseDateiderÖffentlichkeitzugänglich.Soweit
erforderlich,wurdendieVerschlusssachen indieserDateiinÜbereinstimmung mitArtikel5
dergenanntenVerordnungfreigegeben.

COMMISSION OTTHEEUROPEANCOMMUNITIES
COM(76)119final.
Brussels,31March1/76.
PROPOSALFORACOUNCILDIRECTIVE CONCERNING
MUTUALASSISTANCE BYTHECOMPETENT AUTHORITIES CF
MEMBERSTATESINTHEFIELDCFDIRECTTAXATION
(submittedtotheCouncil "bytheCommission)
COM(75)119final.

EXPLAITATOÎÎT IIEÏÎORAÎÎDT3K
GIZTERi.iL C®T£TT)EnATiaTS
1*Taxevasion andtaxavoidance reaching' "beyond thenational "borders
ofMember States represent aserious problem ,notonly nation® y "butalso
atCommunity level# Foreach Member State they lead to "budgetary losses
andto "breaches intheprinciple ofBciEc'hax^ti on,butinaddition they
arelikely todistort capital movements andtheconditions ofcompetition .
2.3ecau.se oftheincreasing interpenetration ofeconomies andthedeve­
lopment ofmultinational .'companies ,itisnolonger possible effectively
tocombat international taxevasion andavoidance merely nationally or
bilaterally ;theattack needs tobeorganised onaswide aninternational
basis aspossible and ,inthefirst place ,attheCommunity level *
;
3.Forthese reasons ,on10February 1975 "theCouncil adoptea ,onapro­
posal from theCommission ,aResolution onthemeasures tobetaken bythe
Community inorder tocombat international taxevasion andavoidance *The
present proposal foradirective contains afirst series ofmeasures inten­
dedtofallow uptheResolution .
4,Cheattack oninternational taxevasion andavoidance requires above
allpermanent collaboration between thetaxadaini strati onsofthevarious
Member States ,sothat each ,ofthexa mayhave access to£.11thefacts and
material ofU3eincorrectly determining theamount chargeable totax*
Such collaboration would ,itistrue ,beallthemore effective ifallthe
States wore able toemploy thesame for–reaching means ofascertaining
those facts .Butthat would require aninevitably long-term effort tohar-
monise legisls/tions *Anyaction which ,istobring about quick results must
therefore find itsplace within thelimits imposed bythepresent differen­
cesinthestructure ofnational laws *Thepresent proposal accordingly
provides that collaboration between admni strati onsshall becarried out
within theconditions andlimits ofeach Member Stated existing legisla­
tion *

5.Thepresentproposalforadirectiveisrestrictedtothefieldof
directtaxes,inwhichtheMemberStatesalreadyhaveexperienceofco­
operationunderdoubletaxationagreements.Similaractionisneededfor
indirecttaxes,especiallyvalueaddedtax#TheCommissionhas.begunthe.
workneededforthisanditintendstosubmitaproposalto.the
Councilassoonaspossible® •,1.
6#Hostofthedoubletaxationagreementswhichhavebeenconcluded
betweenalmostallMemberStatescontainarticlesprovidingforbilateral
co-operation.Thepresentproposalwillnotmaketheseprovisionsredundant
WheresuchanSfcrticlegoesfurtherthantheprovisionsoftheproposal,
itwillcontinuetobeapplied*Butthesewillbeexception?!cases#In
general,theproposedprovisionsstrengthenandexpandtheexchangeof
information andthemutualassistanceproceduresinaCommunitysetting
andestablishtheminsituationswhicharenotevenenvisagedintheMlap-
teralconventions,
7»Sincetaxevasionandavoidancearealwaysassumingnewforms,itis
importantthatanyactiontakenattheCommunitylevelshallbecapable
\ • "*
ofadaptationtochangesincircumstances andtotheexperiencewhichthe
taxadministrations tallgainwithincreasingco–operation "betweenMember
States,Thisneedtocreatepermanentopportunities foradaptationand
developmentfindsexpressionintheproposalintwoways.Inthefirst
place,permanentcollaboration betweentheHemberStatesandtheCommis­
sionisprovided,notonlytoreviewtheworkingoftheco-operation pro­
ceduressetupundertheproposalbutalsototakeadvantageoftheexpe­
riencegained,withaviewtoimprovingtheco-operation proceduresand
to-3formulating newmeasuresifneedarises.Inthesecondplaoe,the
structureoftheproposalforadirectiveisitselfveryelastic,
8,Theprovisionsoftheproposalfall,infact,intotwo'complementary
categories.Firsttherearethebindingprovisions ,whichobligeallthe
HemberStatestoobservecertainrulesconcerningthesupplyofinformation
andthecarryingoutofenquiriesinclearlydefinedcircumstances,
Sercou.diy •»**thereareprovisionsofanoptionalnature,permitting
analmostalacarteextensionofcertainco-operation measures.Incon­
sideringifortowhatextentitwillmakeuseofthese"'opportunities for

going Leyendtheobligatory requirements ,each Member State will have to "
consider whether theprocedure inquestion isreally useful inthe circum­
stances ofitsownbilateral relationships andwhether itcanbeadopted
within the S.tate 'sconstitutional orlegislative framework .
9. Theamount ofinformation exchanged under theprovisions ofthis
proposal islikely tobemuch greater than under previous arrangements .For
this reason ,itisvery important topreserve therights oftaxpayers and
totaJce thegreatest precautions toensure that information passed from
oneState toanother isnotdivulged tounauthorised persons .The Commis­
sion' sproposal lays doxm very strict rules tocafeguard theconfidential
character uftheinformation and toensure that itcanonly beused for
thepurpose laid down . '•
10. Itisnotimpossible that theintroduction ofmeasures forawider
exchange ofinformation between thetaxadministrations will bring about an
increase inthenumber .ofcases where there isdouble taxation ,especially
inthefield oftransfer pricing within groups ofcompaniesj information
obtained inthis waymight lead aMember State toincrease thetaxable pro-,
fits ofanenterprise without theother Member State calving acorresponding
adjustment .Inorder todeal with this problem theCommission will ,after
theusual consultations ,submit totheCouncil notlater than July 1$"J6 a
proposal foradirective itfhich itwould like toseeadopted atthesame
time asthepresent proposal .
11. .Although theprovisions oftheproposal donotregulate relations
between Member States andthird countries ,itisobvious that mutual as­
sistance ,asameans ofcombatting international taxation abuses ,should
notberestricted tocollaboration within the Community boundaries .The
Commission isaware that itwould bedesirable toextend the scope ofthe
co-operation procedures beyond these limits anditintends tosubmit to
theCouncil ,induecourse ,other proposals whose purpose will beto
strengthen collaboration ,especially with those third countries ivhich are
important inanindustrial andfinancial sense .

COIMgTTS OITCERTAINARTICLES
Article1
11.Thefirstparagraph .ofArticle1laysdowntheprinciplethatthe
competentauthoritiesoftheKemberStatesshallexchangeinformationwhich
isrelevantindeterminingthecorrectliabilitytotaxesonincomeandon
capital#Theremainingparagraphsdefinecertainessentialconceptssuch
*• , '< 'as"taxesonincomeandoncapital"and"competentauthorities oftheMem­
berStates".
12.Thedefinitionoftaxesonincomeandoncapitalaimstomakethe
scopeof"ths-!directiveasbroadaspossible.Itdoesnotmatterforwhich
authoritythesetaxesarecollected:itcanequallywellbetheState'
itself,itspolitical©ubdivixjn© ,oritslocalauthorities.
13.;;Equallythemethodofcollectionmakesnodifference :thetaxcan.
beleviedbymeansofadirectassessment,bydeductionatsourceorin
theformof,surchargesor"centimesadditionnels".t
Article2
14*ThisArticledealswiththeexchangeofinformation uponrequest.
Thepurposeofparagraph1,secondsentence,istograntthecom­
petentauthorityoftherequestedStatetheoptionofrefusingtocomply
withtherequestifthatauthorityconsidersthatthecircumstances are
asdescribedinthatsentence.Clearlythisoptioninnowayrestrictsthe
possibilityofrefusalunderArticle8. -
15.Paragraph2fulfilsadualrole:
–ontheonehand,itrequiresthecompetentauthorityofthe
requestedState,whenthatauthoritydoesnothavetheinforma­
tionrequestedatitsdisposal,toundertakeallnecessaryenqui-
rieswhileobservingthelimitsset6ut.in.Artiel®8;

–ontheotherhand,itprovidesthecompetentauthorities oftheMember
Stateswithalegal"basis,if-fehey-jreedit,:for\er:ctca-dxng £h®parens
ofenquirytheyhavefordeterminingnationaltaxliabilities sothati
"theycovertherequirements.' of"another"States ''
•>
Article3
16,Whereasexchangeonrequestmustrelatetoanactualcase,automatic
exchangeinvariablycoverscertaincategoriesofdata,suchasdividends,
royalties ?frontierworkers®payetc*.,.,onwhichthecompetentauthorities
oftheMo-nbcrStatesconcernedhavereachedprioragreementundertheconsul­
tationoroceduresetoutinArticle9,
Artide'■
17,ThisAr&aLedealswiththetransmission ofinformation otherwisethanon
requestorbyprioragreementasprovidedforinArticles2and3,
18,Paragraph1obligesthecompetentauthoritiestofurnishinformation
inthefivesetsofcircumstances setoutinsub-paragraphs atoe.The.
possibility ofextendingthisobligationtoothercasesisprovidedforin
paragraph2,Itisself–evidentthat,onanyreasonableinterpretation ,the
competentauthoritiesarenotrequiredtotransmitinformation which.they
considerholdslittleinterestforthetaxadministration oftheother
MemberGtate.' 1
19,Asregardssub-paragraphs atoe,thefollowingobservations shouldbe
made: >
sub-para.^rapha:thiopprntisioii coversinageneralwayeverycase
wheretherehasbeen-anabnormalreductioninorexemptionfromtax,
eveninhere,inthe-absenceofproofofdeliberateintentbythe
taxpayer,thereisnotaxevasioninthestrictsenseoftheterm.;
–sub--paragraphb:thepointtonoteisthatitmustbeacaseofthe

sametaxpayerinthedifferentMemberStatesthecaseofatransfer
<!ofprofits "betweenassociatedcompaniesisdealtwithinsub–paragraph
Anareainwhichsub-paragraph bcouldoftenapplyisthatofdouble
taxationtreaties.Itshould "beemphasizedthattheoperationofthis
provisionisnotconfinedtocaseswherethetaxpayerattemptstogain
improperlyfromthetreaty:itissufficientIfthetaxpayer •
,obtainataxadvantageinoneMemberStatewhichshouldentailatax
disadvantage intheotherState#
**sub-paragraph c:theterm"throughoneormoreothercountries"is
intendedtocoveraswidelyaspossiblealltheintermediaries who
actinthetransactions andaresituatedinanothercountry,whether
thatcountryisaMemberStateorathirdcountry#
Itcanthusapplytoanindependentindividualorlegalpersonor
equallywelltoapermanentestablishment ofoneofthepersonsliable
totaxinaMemberState#Similarly,itdoesnotmatterwhetherthe
intermediaryissubjecttotaxintheotheroountry#
20,Thepurposeofparagraph3istoaseSftazriLsethecompetentauthorityin
generaltermstoeffectaspontaneoustransmission ofinformation ,incases
otherthanthosecoveredbyparagraphs 1and2,wheneveyoritacquiresknowledge
offactswhich®aybeofinteresttothetaxadministration ofanotherMember
State#
Article6
21#ThisArticleprovidesalegalbasisenablingthecompetentauthorityofa
"MemberState .:toauthorisethepresenceonitsterritoryofofficialsof
anotherMemberState#Thetextbringsoutthenon-compulsory characterofthe
provision:thecompetentauthorityofaMemberStateisconsequently not
obligedtocomplywitharequestfromthecompetentauthorityofanother
MemberState#

Article 7
22,Paragraph 1requires thecompetent authority tomaintain secrecy concer­
ning theinformation obtained from another Member State inlike manner as
for information obtained under its domestic law .Where there isabreach of
secrecy ,thepenalties provided bytheadmini strati veandpenal code ofthe
State concerned maybeapplied ,
,23,Paragraph "2specifies thepersons andauthorities towhom theinforma­
tion obtained naybedivulged ,aswell asthepurposes forwhich itmaybe
used .Thepossible uses permitted bythis provision arerelatively circums­
cribed ,I'Jhere ,however ,thecompetent authority oftheMember State which
supplies theinformation considers that its use nr:;st bemore restricted ,
paragraph 3makes itpossible toenforce even stricter' secrecy,'
24,Onthe "other hand ,thepossible uses permitted byparagraph 2maybe
more restrictive than those allowed under thenational legislation ofthe
Member States concerned .Inorder toenable this particular drawback tobe
overcome ,paragraph 4provides alegal basis foraderogation from thepro­
visions ofparagraph -.2,
Article 8
25,This Article refers tothelimitations onexchange ofinformation and
onenquiries toobtain information ,
26,Paragraph 1states that thecompetent authority isnotrequired to
exceed thelimits setbyitslegislation oradministrative practice rela >-
ting tothedetermination ofnational taxes .Butwithin these limits ,the' '
competent authority must make useofallthepowers at£"tsdisposal inorder
toboin'aposition toSupply theinformation , .. • ■'

27•Paragraph2dealswithcertaininformation which,affectsthe
"ordrepublio"#
28..Paragraph3allowsinformationto"bewithheldwheretheStatefor
whichitisintendedisnotinapositiontofurnishsimilarinformation#
ThecompetentauthorityofthislatterMemberStatecannotthereforerequi­
reanotherMemberStatetoprovideinformationsinitspossessionifits
ownlegislationoradministrative practicedoesnotpermitacorresponding
provisionofinformation.
Article9
2%Indealingwithproblemssuchasthesecoveredbythepreceding
Articles,detailedrulesofapplication andenforcement havetobeleft,
inmanyGases,tobilateralagreementbetweenthecompetentauthoritiesof
theMemberStatesconcerned#Thereisthereforeaneedforasimpleand
y
efficientproced.urevrnderwhichquestionsarisingcanbeexamined#
30#Furthermore ,theCommunitycharacterofthemeasurerequiresthat,
asfaraspossible,itshallbeuniformlyappliedandinterpretedthroughout
theCommunity#

31.'iMS'iiifcicjoseekstoachievethesetwoobjectivesbyproviding -twoconsul–respectively ,tatiocprocedureswhichoperate,/dependingontheinterestsinvolved:
-011abilateralbasis,forbilateralmattersj
–onaCommunitybasis,foxmatters'-fchzrfearenotexclusivelybilateral.
32.ToensurethatthisCommunityprocedurecanbeappliedequallyand
effectively ,paragraph3requirestheotherMemberStatesandtheCommission
tobenotified"aposteriori"ofbilateralmeasuresinsofarastheydo
notdealexclusivelywithindividualcases.Thisnotification willenable
eachoftheotherMemberStatesandtheCommissiontojudgewhetheritis
expedienttorequestCommunityconsultations forthepurposeofhaving
thesemeasuresextendedtotheMemberStatesasawhole#
33,Theconsultation procedureofArticle9isfreeofcomplications andis
effectivefromthe■legale,andadministrative pointsofYiiew,byvirtue
ofthefactthatitoperatesdirectlybetweenthecompetentauthorities and,
whereappropriate ,thefi8mnission,enablingthemtotalcedecisionsontheir
ownauthority.
Article10
34*Thisib3k3ei.Gst£iflisheisipermanentcollaboration betweentheMemberStates
andtheCommission.
35.Aprimepurposeofthiscollaborationistofollowtheprogressofco­
operationbetweenthecompetentauthorities soastoimproveitandpossi­
blyenlargeitsareaofapplication.
36.Asecondfunction,towhichexplicitreferenceismade,concernsthe
problemoftransferpricingwithingroups.TheArticleprovidesforallthe
taxadministrations topooltheirexperienceinthisfieldwithaviewto
thepossibleformulationofCommunitymeasures.

4 ^ %V"Sfv\ ;.v
"PROPOSAL FOR ACOUNCIL DIP.ECTTVE
concerning mutual assistance bythscompetent authorities
ofMember States inthe field ofdirect taxation
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
having regard totheprovisions ofthetreaty establishing the
European Economic Community andparticularly Article 100 . ;
» -f '
having regard to .theproposal oftheCommission ,
having regard totheopinion oftheEconomic andSocial Committee ,
having regard totheopinion oftheEuropean Parliament ,
whereas practices oftaxevasion andtaxavoidance reaching beyond
national borders ofMember States lead tobudget losses andviolations of
theprinciple offair taxation andareliable tobring about distortions of
capital movements andofconditions ofcompetition jwhereas they therefore
affect theoperation ofthecommon market j - • ■
whereas theCouncil forthese reasons adopted on10February 1975 a
Resolution onthemeasures tobetaken bytheCommunity inorder tocombat
international taxevasion andavoidance ;
whereas theinternational nature oftheproblem means that national
measures ,whose effect does notextend beyond State boundaries ,arein­
sufficient andwhereas collaboration between administrations ,onthebasis
ofbilateral agreements ,isalso unable tocounter new iforms oftaxevasion
andavoidance ,which aremore andmore assuming amultinational character ;
whereas itistherefore desirable tostrengthen collaboration between
taxadministrations within theCommunity inaccordance with these principles ,
under observance ofcommon rules v- ""v.- ' ?~i~-
1 1ν■ ■..··ι" .· ·
whereas theMember States ought tosupply toeach other ,onrequest ,
information concerning parfritsulak *"cases andwhereas therequested State
ought tomaJce thenecessary enquiries toobtain this information j

-2-
whereastheKemberStatesoughttoexchange,evenwithoutrequest,
ar!-rinformation whichappearsusefulforthecorrectdetermination of
taxesonincomeorcapital,inparticularwherethereappearsto"bean
artificialtransferorprofitsbetweenundertakings indifferentMember
Statesorwheretransactions arecarriedout"betweenundertakings intwo
MemberStatesthroughathirdcountryinordertoobtaintaxadvantages,
orwheretaxhasbeenornaybeevadedoravoidedforanyreasonwhateverj
whereasitisimportantthatofficialsofthetaxadministration of
oneMemberStateshallbeallowedtobepresentintheterritoryofanother
MemberStateifboththeStatesconcernedconsideritdesirable;
whereasitoughttobeensuredthatinformationtransmittedinthe!
courseofsuchcollaboration isnotdisclosedtounauthcrrised persons,so
thatthebasicrightsandguaranteesofcitizensandundertakings are
safeguarded ;whereasitisthereforenecessarythattheMemberStates
receivingsuchinformation donotuseit,withouttheauthorization of
theI'enberStateswhichsupplyit,otherthanforthepurposesoftaxa­
tionortofacilitateaprosecutionforfailuretoobservethetaxation
lawofthereceivingStates;whereasitisalsonecessarythattherecei­
vingStatesaffordtotheinformationthesamedegreeofconfidentiality
whichithadintheStatewhichprovidedit,ifthatStatesorequiresj
whereasaMemberStatethatiscalledupontoprovideinformation
oughttohavetherighttorefusetodosowhereitslegalprovisionsor.
administrative practicedonotgiveitstaxadministration authorityto
obtainorusesuchinformationforitsownpurposes,orvrheretheprovi­
sionofsuchinformation wouldbecontrarytopublicpolicy,orwherethe
Stateforwhichtheinformationisintendedwouldbeunable,forlegalor
practicalreasons,toeffectasimilarprovisionofinformation ;
/•/•

whereascollaboration betweenthe"emberStatesandtheCommissionis
necessaryforthepermanent -studyofco-operation proceduresnndtheesichasge
ofexperienceinthefieldsconsidered,andinparticularir.thefieldof
theartificialtransferofprofitswithingroups«fundertakings ,withthe
aimofimprovingthoseproceduresandofpreparingappropriate Community
\rules Î
HASADOPTEDTHEPRESENTDIRECTIVE :

4~
Article1
GeneralProvisions
1,ThecompetentauthorityofeachMemberStateshallinaccordancewith
theprovisionsofthisdirectivefurnishallinformationthatmayassist
indeterminingthecorrectliabilitytoanotherMemberState,staxeson
incomeandoncapitaltothecompetentauthorityofthatMemberState.
2,Thereshallberegardedastaxesonincomeandoncapital,irrespec­
tiveofthemannerinwhichtheyarelevied,alltaxesimposedontotal
income,ontotalcapital,oronelementsofincomeorofcapital,including
taxesongainsfromthealienationofmovableorimmovableproperty,taxes
onthetotalamountsofwagesorsalariespaidbyenterprises ,aswellas
taxesoncapitalappreciation,
3,Thetaxesreferredtoinparagraph2ofthisarticleareatpresent:
inBelginu:Impotsdespersonnesphysiques –Personenbelastmg
Impôtdes"sociétés –Vennootschapsbelasting
ImStdespersonnesmorales –Rechtspersonenbelastiiig
IrapStdesnou-résidents -Delastingderr.ict-verblijf~
houders
inDenmark:Indkomstskattentilstaten
Selskabsskat
Kenkommunaleindkomstskat
Denamtskommunale indkorastskat
Folkepensionsbidragene
Spmandsokatten
Densaerligeindkomstskat
Kirkeskatten
Formueskatten tilstaten •'
Bidragtildagpengefonden
/•/•

inGermany KLnkommenst cii6r'
K'cîrperschaftstouer
' ··.-..κ*Veraogensteuer
Gewerbosteuer
inFrarce Impôtsurlerevenu -
Imp3tsurlessociétés
Taxeprofessionnelle •'
Taxefoncièresurlespropriétés "bâties
Taxefoncièresurlespropriétésnonbâties
inIreland: Incometax.
Corporationprofitstax
Capitalgainstax
Wealthtax
inItaly Impostasulredditodellepersonefisiche
Impostasulredditodellepersonegiuridiche
Impostalocalesuiredditi
inL1Te'~>>our£ Impôtsurlerevenudespersonnesphj-mques
Impôtsurlerevenudescollectivités
Impôtcommercial communal
Imp3tsurlafortune
mtheNetherlands Inkomstenbelasting
Vennootschapsbelasting
Vermogensbelasting
intheUr-itpqICn^omiliiooaetax
Corporationtax
Capital ,gainstax
Petroleumrevenuetax

-6-
4,Theprovisionsofparagraph1shallapplyalsotoanyidenticalof
substantially similartaxesimposedsubsequently ,whetherinadditionto
prinplaceofthetaxesnamedinparagraph3«Thecompetentauthorities ,
oftheIlemberStatesshallinformoneanotherandtheCommission whenever
.suchataxentersintoforce.
r;Theexpression "competentauthority"means:
inBelgium:Deministervanfinanciënofeendoordezeaange­
wezenvertegenwoordiger
Lefciinistredesfinancesouunreprésentant autorise
mDenmark Ministerenforskatterogafgifterelleroefulnaeg–
tigedestedfortraeder
mGermanyiDerBundesminister derFinanzenoderseinBeauftragter
inPrance:Leministredel'économieetdesfinancesouun
représentant autorisé
inIreland:TheRevenueCommissioners ortheirauthorized
representative
inItaly:IlMinistroper'lerfinanze odunsuorappresentante
autorizzato
inLtccemlDourg :Leministredesfinancesouunreprésentant autorise
intheITetherlonds :Deministervan^'inanci'diiofGendoordozeaangewezen
vertegenwoordiger
mtheUnited
;Kingdom.-; ■TheCommissioners ofInlandRevenueortheirauthori­
zedrepresentative ■.
•A

:.Erchan^êonreauest ;
1*''•'ThecompetentauthorityofaMeriberStateshallhavepowertorequest
theconpetentauthorityofanotherMemberStatetofurnishinformation
fallingwithinArticle1,paragraph1,in&,particularcase*Thecompetent
authorityoftherequestedStateneednotcomplywiththerequest,ifit
appearsthatthecompetentauthorityoftheStatemakingtherequesthas
notexhausteditsownusualsourcesofinformation ,whichitcouldhave
utilised,accordingtothecircumstances ,toobtaintheinformationrequested
withoutriskoffrustratingthepurposeoftheenquiry.
2.Forthepurposeoffurnishinginformationreferredtoinparagraph1,
thecompetentauthorityoftherequestedMemberStateshallarrangeforthe
conductofanynecessaryenquiries,sofarasmayberequiredtoobtainthe
information.
•ι
Article3
AutomaticSxchana-eofInformation
Forparticularcategoriesofcases,determinedundertheconsultation
procedurelaiddowninArticlethecompetentauthoritiesoftheMember
vStatesshallfurnish'theinformationreferredtoinArtiole1,paragraph1,
withoutpreviousrequestandinaregularmanner.
•Article4
Spontaneous ExchangeofInformation
/ <
•>• . i
1»••-ThecompetentauthorityofeachMemberStateshallwithoutprevious
requestcommunicatetheinformationwithinthescopeofArticle1,paragraph .
1,ofwhichithasknowledge,tothecompetentauthorityofanotherMember
Stateinthefollowingcircumstances j
a)thecompetentauthorityofaMemberStatehasgroundsforsuppo­
singthattheremaybeaIocscftaxintheotherMemberState;

"b)aperson liable totax -secures areduction oforanexemption from
tasi-£najfcemTjir Slfate wSf'Sb-troulcl'gtvef "££s«wto anincrease -in
taxortoliability totaxforMsintheother I-lember State \
c)lousiness dealings between aperson liable totaxinaMember State
andaperson liable totaxinanother Member State areconducted
through oneormore other countries insuch awaythat taxsaving
nayresult inoneortheother Member State orinboth j
d)thecompetent authority ofaMember State hasgrounds forsupposing
that asaving oftaxmayresult from artificial transfers ofprofits
within groups ofenterprises j
e)information transmitted toaMenber State .bythecompetent authority
oftheother Member State hasresulted intheprovision ofinforma­
tion ifhich mayberelevant indetermining theliability totaxin
that other Member State . .
2, Thecompetent authorities oftheMember States shall have power toextend
theexchange ofinformation provided forinparagraph 1tocases other than
those specified therein under theconsultation procedure setoutinArticle 9«
3» Thecompetent authorities oftheMember States shall have power tocom­
municate toeach other inanyother case ,without previous request ,anyinfor­
mation within thescope ofArticle 1,paragraph 1,ofwhich they have know­
ledge .
Avoidance ofDelay
Thecompetent authority oftheState which ,byvirtue ofthepreceding
paragraphs ,iscalled upon tofurnish information shall dosowith theleast
possible delay# Ifitencounters obstacles orifitrefuses tofurnish the
information ,itshall forthwith soinform thecompetent authority ofthe
State concerned ,indicating thenature oftheobstacles orthereasons for
the refusal .

/
-9-
'
.Article 6 '
•Coll adoration "byofficials of -the State eorcemed .
Fortheapplication ofthepreceding provisions ,thecompetent autho­
rity oftheinforming Member State andthecompetent authority oftheMeaber
State forwhich theinformation isintended shall have power toagree ,xuider
theconsultation procedure laid down inArticle 9»toauthorise thepresence
inthe first Member State of .officials ofthetaxation administration ofthe
other Member State .Themethod ofapplication ofthis provision shall also
"bedetermined under theabovementioned procedure *
ν
■ •Article-7
: Secrecy
1» Allinformation which isfurnished byvirtue oftheforegoing provi­
sions shall bekept secret intheState concerned inlike manner asinfor­
mation received under -itsdomestic legislation . /
,2. Notwithstanding theprovisions ofparagraph 1,intheState concerned
the information :
–mayonly bemade available tosuch persons asaredirectly involved inthe
,assessment oftaxorintheadministrative control ofassossment totax y
–may ,apart from this ,only bomade known topersons whoaredirectly invol­
vedinajudicial procedure forreviewing thetaxassessment orinapro­
secution inconnection with thetaxassessment ;end
–shall innocircumstances beused forpurposes other than taxation *
3. Theprovisions ofparagraph 2shall notoblige aMember State whose
•legislation lays down fordomestic /purposes narrower limits them those con–
.tained intheprovisions ofthat paragraph toprovide information if'the
State concerned does notundertake torespect those narrower limits#
4*; Notwithstanding' theprovisions ofparagraph s,thecompetent authori­
tyoftheinforming State shall have power topermit information to "beused
<forother purposes intheState concerned ,ifunder thelegislation ofthe
informing State theinformation could ,insimilar circumstances ,beused in
theinforming ,State forsimilar purposes .

-10-
5# Where acompetent authority considers that information which ithas
received from thecompetent authority ofanother Member State islikely
toheuseful tothecompetent authority ofathird Member State ,itnay ,
with theagreement ofthecompetent authority which supplied theinfoma -
tion ,transmit ittothat other competent authority .
.frficle 8
Linits toEr .charge ofInformc /hion
1. Theprovisions ofthis directive shall impose noobligation topro­
vide information which theinferring State would beprevented byitslegal
provisions oradministrative practice from obtaining orusing foritsown
taxpurposes ,
2» Theprovision ofinformation laayberefused where itwould becontra­
rytopublic polie ?,"("ordre public "),
3. Thecompetent authority ofaMember State mayrefuse toprovide
information where theState concerned would beunable ,forlegal orprac­
tical reasons ,toeffect ,asimilar provision ofinformation * -
.Article 9
CorTritati ons
IHM H.QiWl l,H.1
1, Consultations ontheapplication oftheprovisions ofthis directive
shall beheld ,inacormittee should theneed arise ,between :
–thecompetent authorities ofthetwoMember States ,attherequest of
either ,i;irespect ofbilateral questions ;
–thecompetent authorities ofalltheMember States andtheCommission ,
attherequest ofoneoftheauthorities oroftheCommission ,insofar
asthematters concerned arenotsolely ofbilateral interest .
Inparticular ,consultations shall beheld inthecases referred to
inArticle 3,inArticle 4,paragraph 2ai.dinArticle 6.

2.The'competentauthoritiesoftheIlemberStatesshallhavepowerto
.communicatedirectlywitheachothorintheapplicationofparagraph1,
ThecompetentauthoritiesoftheMemberStatesmaylaymutualagreementper­
mitauthoritiesdesignated "bythemtocommunicatedirectlywitheachotherin
specifiedcasesorinspecifiedgroupsofcases.
3.Wherethecompetentauthorities makearrangements onbilateralmatters,
otherthanthesottlsmentofindividualcaces,whichformthesubjectmatter
ofthisdirective,theyshallassoonaspossiblesoinformtheComndanion.
TheCommissionshallnotifythecompetentauthoritiesoftheotherMember
■States.
Article10
ofExperier.ee
TheMemberStatesshalltogetherwiththeCommissionkeepthecollabo­
rationprescribedbytheprovisionsofthisdirectiveunderconstantreview
s <
andshallpooltheirexperience,especiallyinthefieldoftransferpricing
withingroupsofcompanieswithaviewtosecuringimprovementsincollabo­
rationand,whereappropriate,formulating 1furthermeasuresin'thespecified
fields.
/
Article11
■1IMIllg>«IHllHI|i <■
Effectuponwiderobligations toprovideassistance
a–*– ■WMIn»a>i mmmmncmrmmia ■-& tmmmmwflw OWM––»
Theforegoingprovisionsshallbewithoutprejudicetoanywiderobli­
gationstoexchangeinformation assumedunderanyotherinternational arran­
gementhavingforceoflaw.
Article12.
FinalProvisions
*\The-.MemberStates!•shallbringintoforcethenecessarylegislative and
administrative provisionsinordertocomplywiththeprevisionsofthepresent
directivenotlaterthanthefirstdayofJanuaryofthesecondyearfollowing
theyearofitsadoption,andshallimmediately communicate themtotheCom­
mission. *

-12-
2.TheMemberStatesshallensurethatthetextsofanyfurthermainpro
visionsofnationallawthattheyadot>tillthefieldcoveredbythepresent
directivearecommunicated totheCommission,
Article13
ThepresentdirectiveisaddressedtotheMemberStates.
Doneat the InthenameoftheCouncil
ThePresident