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Brussels, 25.4.2008

SEC(2008) 547

COMMISSION STAFF WORKING DOCUMENT

Taxation of savings List of statistics – Disclosure of statistics

INTRODUCTION

In order to properly assess the functioning of Council Directive 2003/48 on taxation of savings income in the form of interest payments (Savings Directive thereafter) as regards exchange of information, it is necessary to foresee what kind of statistics will have to be made available by Member States and the other jurisdictions participating to the savings taxation measures as from 2006 onwards. This statistics have also to be considered as an indispensable contribution to the report that the Commission has to present to the Council in 2008, on the basis of Article 18 of the Savings Directive.

To this end, the statistics should concern both economic and technical aspects, in order for the Commission to be able, if appropriate, to propose any measure aimed at improving the system of exchange of information foreseen by the Savings Directive, to the benefit of all Member States and jurisdictions participating to the savings taxation measures.

However, neither the Savings Directive, nor the Agreements concluded by the Community or its Member States with the Third Countries and the Dependent and Associated Territories for the implementation of the same or equivalent measures to the Savings Directive, contains provisions requiring the jurisdictions involved to provide statistical data.

Therefore, with a view to define the statistics to be provided on a voluntary basis by Member States and the other jurisdictions participating to the savings taxation measures and to facilitate the discussion between Members States, the Commission services drafted a non exhaustive list of possible items for which statistics would be needed. A first discussion on this list took place during the 3rd meeting of the Working group on administrative cooperation in the field of direct taxation (WG ACDT) on 28 and 29 March 2006. The discussion on this issue continued during each of the following WG ACDT meetings with a view to getting common views on the list of statistics and on the availability of information in each individual Member State and to establishing tables for easing the collection and compilation of data. The question of disclosure of the statistical data coming from Member States to the other jurisdictions participating to the savings taxation measures and within the content of the Commission report to the Council as provided for by Article 18 was also raised.

However, the discussions showed that not all Member States were ready to provide statistical information on all the items of the list or to authorize the disclosure the information as described above.

Despite this variety of positions, the Commission services completed templates based on the list of items described under point 2 of this Commission Staff Working Document. They started to compile the available data both for 2006 exchanges of information/transfers of withholding taxes (tax year 2005) and for 2007 exchanges of information/transfers of withholding taxes (tax year 2006). However, the current state of play of the compiled statistical information is not satisfactory, due to the lack of available information and to the various positions held by Member States.

In the absence of compulsory provisions both in the Savings Directive and in the Agreements with the other jurisdiction participating to the savings taxation measures, the Commission depends on the cooperation of Member States. In particular, the Commission's ability to respond to the call addressed to the Commission by the Council on 4 March 2008 to accelerate the work on the first report on the implementation of the Savings Directive depends on the following factors :

- Agreement on the list of items for statistical purposes contained under point 2 of this Commission Staff Working Document,

- Completion by Member States of the tables based on this list for 2006 and 2007 before the 31st of May 2008,

- Agreement to provide these statistics yearly from 2008 onwards and to invite the other jurisdictions participating to the savings taxation measures to do the same.

- Agreement on the principle of disclosure of these statistics to the Third Countries and Dependent and Associated Territories having signed Agreements with the European Community or its Member States, if they ask for it.

- Agreement on the possibility for the Commission services to use this information to assess the efficiency and effectiveness of the Savings Directive and to quote figures in its report under Article 18, if it is deemed necessary for such an assessment.

LIST OF ITEMS FOR STATISTICAL PURPOSES

Economic items

Withholding tax:

For AT, BE and LU (as long as they apply the transitional provisions of the Savings Directive) as well as for the Dependent and Associated Territories which apply the transitional provisions on withholding tax and the Third Countries, the total annual amount of tax revenue shared from the withholding tax, split by Member State of residence of the beneficial owners.

For AT, BE and LU (as long as they apply the transitional provisions of the Savings Directive), as well as, should the case arise, for the Dependent and Associated Territories which apply the transitional provisions on withholding tax, the total annual amount of tax revenue shared with the other Member States coming from the withholding tax levied under Article 11(5) of the Savings Directive.

The data related to the total amounts collected from the withholding tax, split by Member State of residence of the beneficial owners, should be communicated also to the national institution in charge of the compilation of Balance of Payments statistics.

Amount of interest payments/sales proceeds:

For the Member States, Dependent and Associated Territories and Third Countries exchanging information or having opted for the voluntary disclosure provision (of Article 13.1 of the Savings Directive), the amount of interest payments within their territory which is subject to exchange of information (under Article 9 of the Savings Directive), split by Member State or Dependant and Associated Territory of residence of the beneficial owners.

For the Member States, Dependent and Associated Territories and Third Countries exchanging information or having opted for the voluntary disclosure provision (of Article 13.1 of the Savings Directive), the amount of sales proceeds within their territory which is subject to exchange of information (under Article 9 of the Savings Directive), split by Member State or Dependant and Associated Territory of residence of the beneficial owners.

For Member States exchanging information or having opted for the voluntary disclosure mechanism, the amount of interest payments subject to exchange of information, split by type of interests according to the categories of Article 8.2 of the Savings Directive.

The data related to the total amounts of interest payments and sales proceeds, split by Member State of residence of the beneficial owners, should be communicated also to the national institution in charge of the compilation of Balance of Payments statistics.

Beneficial Owner:

For all Member States, Dependent and Associated Territories and Third Countries, the number of beneficial owners resident in other Member States and Dependent and Associated Territories, split by Member State or Dependant and Associated Territory of residence.

Paying agents:

For all Member States, the number of paying agents per sending Member State, involved in exchange of information or withholding tax for the purposes of the Savings Directive.

Residual entities:

For all Member States and Dependent and Associated Territories, the number of residual entities having received interest payments (falling under Article 6.4 of the Savings Directive) It concerns both sending Member States where interests payments have been paid to residual entities established in other Member States and receiving Member States who have such entities at domestic level.

Technical items

Records

For the Member States, Dependent and Associated Territories and Third Countries exchanging information or having opted for the voluntary disclosure provision of Article 13.1 of the Savings Directive, the number of records sent and received. One record means one payment for one beneficial owner.

Treated/corrected records

Number and percentage of syntactically invalid records that can be processedNumber and percentage of syntactically invalid records that cannot be processedNumber and percentage of non-treated recordsNumber and percentage of corrected records upon requestNumber and percentage of spontaneously corrected recordsNumber and percentage of successfully treated records

Optional items

2.3.1 - For the Member States and Dependent and Associated Territories, the amount of interest payments to entities which is made subject to exchange of information (under Article 4.2 of the Savings Directive), split by Member State of establishment of the entity.

2.3.2 - For the Member States and Dependent and Associated Territories, the amount of sales proceeds to entities which is made subject to exchange of information (under Article 4.2 of the Savings Directive), split by the Member State of establishment of the entity.

2.3.3 - Number of certificates issued for allowing the residents of Member States to obtain the exemption from the withholding tax.

2.3.4 - The respective shares of total annual tax collected from resident taxpayers on interest payments made to them by domestic paying agents and by foreign paying agents .

It must be noted that the Commission services had initially asked all Member States to provide the statistics of items 2.3.3 and 2.3.4. However, most of the Member States indicated that they cannot report the information.