Proposal for a Council Directive on administrative cooperation in the field of taxation
Date: 2009-02-02
Institutions: European Commission
Subjects: VAT, administrative formalities, domestic market, fraud, intra-EU trade, tax evasion

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 2.2.2009 
COM(2009) 29 final 

2009/0004 (CNS) 

Proposal for a 

COUNCIL DIRECTIVE 

on administrative cooperation in the field of taxation  

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

CONTEXT OF THE PROPOSAL 

110 

Grounds for and objectives of the proposal 

The Member States' need for mutual assistance in the field of taxation and especially 
for  direct  taxation  is  growing  rapidly  in  a  globalised  era.  There  is  a  tremendous 
development of the mobility of taxpayers, of  the number of  cross border transactions 
and of the internationalisation of financial instruments, which makes it more and more 
difficult  for  Member  States  to  assess  taxes  due  properly,  while  they  stick  to  national 
sovereignty as regards the level of taxes. 

This increasing difficulty in assessing taxes correctly affects the functioning of taxation 
systems and entails double  taxation, which itself incites to tax fraud  and tax evasion, 
while the powers of controls remain at national level.  

Therefore,  one  single  Member  State  cannot  manage  its  internal  taxation  system, 
especially as regards direct taxation, without information coming from other Member 
States.  In  order  to  overcome  the  negative  effects  of  this  phenomenon,  it  is 
indispensable to develop a new administrative cooperation between the Member States' 
tax administrations.  

There is a need for instruments likely to create confidence between Member States, by 
setting up the same rules, obligations and rights for all Member States. In this regard, it 
was  observed  in  recent  court  cases  that  in  practice  cooperation  mechanisms  may  not 
function  in  an  efficient  and  satisfactory  manner,  but  that  however,  Member  States 
cannot rely on deficiencies in the cooperation between their tax authorities in order to 
justify restrictions on fundamental freedoms. 

Therefore, a completely new approach must be taken by creating an entirely new text 
to  give  Member  States  the  powers  to  efficiently  cooperate  at  international  level  to 
overcome  the  negative  effects  of  an  ever  increasing  globalisation  on  the  internal 
market. As such, administrative cooperation raises upward national laws but does not 
replace nor approximate them.  

120 

General context 

The existing Council Directive 77/799/EEC of 19 December 1977 concerning mutual 
assistance  by  the  competent  authorities  of  the  Member  States  in  the  field  of  direct 
taxation  and  taxation  of  insurance  premiums  does  not  constitute  any  more  the 
appropriate tool. Its deep weaknesses have been looked into by the high-level Council 
Working Party on fraud in a May 2000 report (Document 8668/00) and more recently 
by  Commission  Communications  of  2004  (COM  (2004)611  final)  and  2006  (COM 
(2006)254final).  They  were  also  covered  in  the  opinion  expressed  by  Member  States 
during the consultation process preceding this Proposal for a Council Directive. 

The  Directive  -  even  with  its  later  amendments  -  was  designed  in  a  different  context 
from  the  present  internal market  requirements.  In  1977,  there  was  no  free  circulation 
and a very weak integration. Today, Member States need to use instruments other than 
the Directive into the interests of international mutual assistance. This situation creates 
uncertainty  and  runs  counter  to  transparency,  equality  of  treatment,  fair  competition 
and the smooth functioning of the internal market. In practice, the existing Directive is 
no longer able to meet the present requirements of administrative cooperation. 

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A  first  approach  to  limiting  the  negative  taxation  effects  of  internationalised 
investments is contained in Directive 2003/48/EC on taxation of savings income in the 
form  of  interest  payments.  However,  this  Directive  is  concerned  only  with  a  certain 
type of savings. But this Directive on savings also shows that when the uniformity of 
tools  and  instruments  is  created,  Member  States  are  able  to  exchange  information 
properly and efficiently. 

A  reinforced  instrument  for  administrative  cooperation  in  the  taxation  sector  will 
ensure and maintain full national sovereignty over the types and level of taxes. Due to 
the lack of harmonisation in this field, enhanced tax administrative cooperation is the 
only way of assessing taxes correctly and thus preventing and combating tax fraud and 
tax  evasion.  A  stronger  form  of  tax  administrative  cooperation  is  crucial  for  the 
interests of Member States and the EU, the main aim being to protect Member States' 
financial interests more effectively and to avoid market distortion.  

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Existing provisions in the area of the proposal 

From  1979  until  1992,  VAT  was  part  of  the  scope  of  Directive  77/799/ECC.  Excise 
duties were also part of the scope of that Directive from 1992 to 2004. However, due to 
the conclusions of the high-level Council Working Party on fraud in May 2000 report, 
which identified the incapacity of this Directive to fulfil its objectives, the Commission 
presented  two  separated  draft  Regulations  aiming  at  creating  an  entirely  new 
environment  for  administrative  cooperation  for  VAT  and  excise  duties.  These 
Regulations  were  adopted  respectively  on  7  October  2003  for  VAT  (Regulation 
1798/2003) and on 16 November 2004 for excise duties (Regulation 2073/2004). VAT 
and excise duties were therefore withdrawn from the scope of Directive 77/799/EEC. 

A similar approach is followed with the current proposal. The new reinforced Directive 
provides  for  an  organisation  chart,  common  rules  of  procedures,  common  forms, 
formats  and  channels  for  exchanging  information.  It  also  provides  for  a  committee 
procedure, to deal with technical measures and the sharing of information, and to create 
tools  and  instruments  to  minimise  the  obstacles  to  the  efficient  exchange  of 
information. 

In addition, the scope of Directive 77/799/EEC is limited to direct taxes and insurance 
premiums, whereas the current proposal covers all indirect taxes that are not yet dealt 
with  in  a  European  Community  act,  i.e.  indirect  taxes  other  than  VAT  and  Excise 
duties. As such, it creates for the first time a set of rules for a series of taxes that were 
not covered by any of the existing Community legal framework. 

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Consistency with the other policies and objectives of the Union 

Not applicable. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

Consultation of interested parties 

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Consultation methods, main sectors targeted and general profile of respondents 

The consultations took place in Working Groups and by means of a questionnaire on 
suggestions for improving the existing situation.  

Summary of responses and how they have been taken into account 

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The general opinion of Member States is that the current Directive needs to be entirely 
strengthened.  The  point  was  underlined  that  the  Directive  in  its  present  form  cannot 
establish  a  common  level  of  obligation  that  would  serve  its  intended  aims.  Precise 
opinions have also been expressed on the content of the new instrument. 

The  Commission  has  taken  into  account  the  opinions  of  the  Member  States,  and  the 
result is a proposal for a Council Directive.  

Collection and use of expertise 

There was no need for external expertise. 

Impact assessment 

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No impact assessment has been made for this proposal.  

The  other  option  considered  was  to  amend  the  existing  Directive.  However,  for  the 
reasons described before, this was not considered appropriate. 

LEGAL ELEMENTS OF THE PROPOSAL 

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Summary of the proposed action 

The Commission proposes to the Council to adopt a new Directive on administrative 
cooperation in the field of taxation. 

The  aim  is  to  create  a  legal  instrument  of  high  quality  for  enhancing  administrative 
cooperation  in  the  field  of  taxation,  in  order  to  allow  a  smooth  functioning  of  the 
internal market by circumventing the negative effects of harmful tax practices. 

Such  an  approach  will  have  to  effect  to  bring  this  cooperation  into  line  with  the 
existing provisions in the field of VAT and excise duties administrative cooperation.  

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Legal basis 

Articles 93 and 94 of the EC Treaty. 

Subsidiarity principle 

The  subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  under  the 
exclusive competence of the Community. 

The  objectives  of  the  proposal  cannot  be sufficiently  achieved  by  the  Member  States 
for the following reason(s). 

The competence of national tax authorities is traditionally limited to their territory. The 
fight  against  tax  fraud  -  as  confirmed  by  many  Commission  documents  -  requires 
action at EU level. 

Administrative  cooperation  between  these  authorities  could  be  based  on  bilateral  or 
multilateral agreements. Such provisions are normally incorporated in double taxation 
agreements, the scope of which is generally limited to income taxes. However, correct 
assessment of taxes and transnational tax fraud and tax evasion can only be tackled by 
common measures at EU level.  

Community action will better achieve the objectives of the proposal for the following 

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324 

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reason(s). 

Member  States  themselves  have  expressed  the  need  for  a  global  set  of  more  binding 
EU  rules,  applying  to  all  kinds  of  taxes  not  yet  provided  for  in  European  Union 
legislation. Applying the same conditions, the same methods and the same practices for 
administrative cooperation with regard to all these taxes should facilitate the work of 
the  authorities  and  increase  the  volume,  improve  the  quality  of  the  information 
exchanged.  Adopting  a  more  detailed,  enforced  directive  will  help  to  achieve  this 
objective. 

Tax fraud, of which the non-payment of taxes is an essential element, is at a very high 
level in the European Union. Combating it requires unified efforts which can be better 
achieved  through  a  stronger  Community  instrument  featuring  common  rules  of 
procedure  and  provisions  on  common  methods,  forms,  formats  and  communication 
channels.  

The Commission estimates that the types of administrative cooperation will increase in 
number  after  adoption  of  the  new  directive  (more  requests  for  information, 
spontaneous  information,  automatic  exchanges,  simultaneous  checks,  auditors  in 
another Member State's offices, and sharing of information). 

The  nature  of  the  subject  requires  a  common  approach  to  conditions  and  rules  of 
procedures, principles and tools that can only be achieved by a common legal act. 

The proposal therefore complies with the subsidiarity principle. 

Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

The  proposed  action  only  sets  out  common  rules  of  procedures  and  instruments  to 
facilitate  day-to-day  administrative  cooperation  between  Member  States,  which 
therefore  remain  entirely  responsible  for  their  internal  organisation  and  allocation  of 
resources, for which cases are covered by international administrative cooperation and 
for what use is made of the results. 

The proposed action will not mean any additional financial and administrative burden 
for  the  Community,  national  governments,  regional  and  local  authorities,  economic 
operators and citizens, but should on the contrary rationalise human and financial costs 
by creating a common approach to international administrative cooperation. 

Choice of instruments 

Proposed instruments: directive. 

Other means would not be adequate for the following reason(s). 

This  proposal's  aim  is  to  reinforce,  strengthen  and  modernise  the  provisions  of  the 
existing Directive in order to achieve a better functioning of the internal market and a 
more effective administrative cooperation. For this reason it is necessary to replace the 
Directive's rules in force. The appropriate legal instrument in this case is the directive. 

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BUDGETARY IMPLICATION 

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The proposal has no implication for the Community budget. 

ADDITIONAL INFORMATION 

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Simplification 

The proposal provides for simplification of legislation, simplification of administrative 
procedures  for  public  authorities  (EU  or  national),  simplification  of  administrative 
procedures for private parties. 

The  legislation  is  simplified  as  it  comprises  common  measures  which  are  easy  to 
interpret and apply. 

Public  authorities  will  be  able  to  use  common  tools  and  instruments  in  a  pre-defined 
organisational framework. This set of measures will simplify recourse to international 
administrative  cooperation.  Extending  the  scope  of  EU  legislation  will  mean  that 
administrative authorities will not have to have recourse to different sets of legislation, 
each  with  their  own  rules  and  conditions,  depending  on  the  type  of  claim  for  which 
they are requesting cooperation. 

Private parties subject to international administrative cooperation will be treated on an 
equal footing, with simplified procedures. 

Repeal of existing legislation 

The adoption of the proposal will lead to the repeal of existing legislation. 

Detailed explanation of the proposal 

Chapter I deals with  general questions. Article 1 defines the aim of  the directive and 
the way in which Member States are to cooperate with each other. 

Article  2  concerns  the  scope  of  the  directive,  which  extends  cooperation  between 
Member  States  to  cover  taxes  of  any  kind.  This  Article  takes  its  lead  from  the  Joint 
Council  of  Europe/OECD  Convention  on  Mutual  Administrative  Assistance  in  Tax 
Matters.  The  scope  extends  to  indirect  taxes  not  yet  covered  by  European  Union 
legislation  on  administrative  cooperation.  It  means  that  apart  from  VAT  and  excise 
duties, the Directive applies to all the other indirect taxes (together with direct taxes) to 
make cooperation more effective.  

Article 3 deals with definitions which are not in the existing provisions at all.  

Article  4  is  based  on  the  organisation  of  tasks  as  provided  for  in  the  existing  VAT 
Regulation on administrative cooperation, with the necessary adaptations. 

In Chapter II, devoted to exchange of information, Article 5 and 6 are concerned with 
the  exchange  of  information  on  request  and  administrative  enquiries.  Article  7 
regulates the time limits for the provision of information. Article 7 paragraphs 5 and 6 
are  inspired  by  the  2002  OECD  Model  agreement  on  exchange  of  information  in  tax 
matters. 

Article  8  deals  with  the  automatic  exchange  of  information.  The  proposal  prescribes 
the  automatic  exchange  of  information  for  a  number  of  income  types  to  be  defined 

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under the comitology procedure. For other types of income, it allows Member States to 
conclude supplementary agreements. 

Article 9 covers the spontaneous exchange of information.  

Chapter III deals with other forms of administrative cooperation. Section I regulates the 
presence  of  officials  in  other  Member  States'  administrative  offices  and  their 
participation in administrative procedures. Officials of the requesting Member State are 
allowed  to  exercise  the  powers  of  inspection  conferred  on  officials  of  the  requested 
Member State.  

In  section  II,  devoted  to  simultaneous  controls,  Article  11  keeps  the  wording  of  the 
existing Article 8b of the Directive which had been adopted in 2004.  

In  section  III,  Article  12  on  administrative  notification  is  also  a  relatively  new 
provision in the existing Directive and has therefore been retained. 

In section IV, Article 13 strengthens the feedback obligation due to the Member States' 
wish to introduce a stricter provision. Feedback motivates officials in the field to make 
better use of the various forms of information exchange.  

Article  14  in  Section  V  regulates  the  Member  States'  obligation  to  share  their 
experience. The Article extends the role of the Committee referred in Article 24 as a 
consultative committee. 

In Chapter IV, Article 15 deals with the disclosure of information and documents. The 
proposal  uses  a  broad  approach,  the  aim  being  to  protect  the  Member  State  and 
taxpayers' interests.  

Article  16  introduces  the  disproportionate  administrative  burden  and  exhaustiveness 
principles and provides for grounds for refusal to cooperate. 

Article 17 deals with the limits to these obligations. The first paragraph excludes own 
tax  purposes  and  domestic  interest  as  bases  for  refusal  and  is  based  on  Article  26 
paragraph 4 of the OECD Model Tax Convention, while the second paragraph - based 
on Article 26 paragraph 5 of the OECD Model Tax Convention - is to ensure that the 
limitations  in  Article  16  paragraphs  2  and  4  cannot  be  used  to  refuse  to  provide 
information  solely  because  the  information  is  held  by  banks  and  other  financial 
institutions,  when  this  information  concerns  a  person  resident  for  tax  purposes  in  the 
requesting Member State.  

Article 18 introduces the most favoured nation principle, according to which a Member 
State has to provide cooperation to other Member State under the same conditions as to 
a third country.  

Article  19  deals  with  common  forms  and  computerised  formats  for  the  exchange  of 
information.  Common  forms  are  already  under  construction  and  in  use  in  a  pilot 
scheme. The automatic exchange of information form will be based on the format used 
for the automatic exchange of information under Article 9 of the Directive 2003/48/EC 
(taxation of savings). 

Article  20  mirrors  the  Member  States'  wishes  as  regards  the  threshold  and  language 
regime. The use of the CCN/CSI network is common in Member States and meets with 
the Commission's intentions to get all tax systems using the same channels.  

Article  21  contains  specific  obligations  on  tax  administrative  cooperation  within  and 
between Member States.  

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Article 22 in Chapter V determines the relationship between the Commission and the 
Member States. The Member States have the responsibility to communicate all relevant 
information on the functioning of the Directive. 

Article  23  in  Chapter  VI  regulates  relations  with  third  countries.  The  proposal 
prescribes the compulsory sharing of information from outside the EU and reflects the 
recent fraud cases where an EU Member State and a third country were involved.  

Article  24  in  Chapter  VII  sets  up  a  Committee  on  Administrative  Cooperation  for 
Taxation to monitor the functioning of the Directive. It can also acts as a consultative 
committee. 

Article  25  makes  it  obligatory  to  evaluate  functioning  of  this  Directive,  in  this  case 
after five years of entering into force. 

Article  26  serves  to  repeal  the  existing  provisions,  while  Article  27  relates  to  the 
transposition of the Directive by the Member States and Article 28 prescribes the entry 
into force and the application of this Directive as of 1 January 2010. 

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2009/0004 (CNS) 

Proposal for a 

COUNCIL DIRECTIVE 

on administrative cooperation in the field of taxation  

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
93 and 94 thereof,  
Having regard to the proposal from the Commission1,  
Having regard to the opinion of the European Parliament2, 
Having regard to the opinion of the European Economic and Social Committee3 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  Member  States'  need  for  mutual  assistance  in  the  field  of  taxation  is  growing 
rapidly  in  a  globalised  era.  There  is  a  tremendous  development  of  the  mobility  of 
taxpayers, of the number of cross border transactions and of the internationalisation of 
financial instruments, which makes it difficult for Member States to assess taxes due 
properly.  This  increasing  difficulty  affects  the  functioning  of  taxation  systems  and 
entails  double  taxation,  which  itself  incites  to  tax  fraud  and  tax  evasion,  while  the 
powers of controls remain at national level. It thus jeopardises the functioning of the 
internal market. 

Therefore,  one  single  Member  State  cannot  manage  its  internal  taxation  system, 
especially as regards direct taxation, without information coming from other Member 
States.  In  order  to  overcome  the  negative  effects  of  this  phenomenon,  it  is 
indispensable  to  develop  a  new  administrative  cooperation  between  the  Member 
States' tax administrations. There is a need for instruments likely to create confidence 
between  Member  States,  by  setting  up  the  same  rules,  obligations  and  rights  for  all 
Member States.  

Therefore,  a  completely  new  approach  must  be  taken  by  creating  a  new  text  to  give 
Member States the powers to efficiently cooperate at international level to overcome 
the negative effects of an ever increasing globalisation on the internal market. As such, 
administrative  cooperation  raises  upward  national  laws  but  does  not  replace  nor 
approximates them.  

In  such  a  context,  the  existing  Council  Directive  77/799/EEC  of  19  December  1977 
concerning mutual assistance by the competent authorities of the Member States in the 
field of direct taxation and taxation of insurance premiums does not contains any more 
the appropriate measures. Its deep weaknesses have been looked into by the high-level 

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3 

OJ C […], […], p.[…]. 
OJ C […], […], p.[…]. 
OJ C […], […], p.[…]. 

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(5) 

(6) 

(7) 

(8) 

(9) 

Council Working Party on fraud in a May 2000 report (Document 8668/00) and more 
recently by Commission Communications of 2004 (COM (2004)611 final)  and  2006 
(COM (2006)254final).  

Directive  77/799/EEC,  even  with  its  later  amendments,  was  designed  in  a  different 
context from the present internal market requirements. Today, Directive 77/799/EEC 
is no longer able to meet the new requirements of administrative cooperation.  

Due to the number and the importance of adaptations to be made, a mere modification 
of  the  existing  Directive  would  not  be  sufficient  to  fulfil  the  objectives.  Therefore, 
Directive 77/799/EEC must be repealed and replaced by a new legal instrument. That 
instrument should apply to direct taxes and indirect taxes that are not yet covered by 
other  Community  legislation.  To  this  end,  a  new  Directive  is  considered  to  be  the 
proper instrument in terms of effective administrative cooperation. 

In  particular,  clearer  and  more  precise  rules  governing  administrative  cooperation 
between Member States are necessary. 

There  should  be  more  direct  contact  between  local  or  national  offices  in  charge  of 
administrative  cooperation,  with  communication  between  taxation  central  liaison 
offices  being  the  rule.  The  lack  of  direct  contacts  leads  to  inefficiency,  under-use  of 
the  arrangements  for  administrative  cooperation  and  delays  in  communication. 
Provision  should  therefore  be  made  to  bring  about  more  direct  contacts  between 
services with a view to making cooperation more efficient and faster. 

The  Member  States  should,  on  request,  exchange  information  concerning  particular 
cases;  the  Member  State  so  requested  should  make  the  necessary  enquiries  to  obtain 
such  information;  it  should  also  respect  pre-defined  time  limits  for  answering  a 
request. 

(10)  The Member States should exchange automatically any information where a Member 
State  has  grounds  to  believe  that  a  failure  of  compliance  with  tax  laws  has  been 
committed or is likely to have been committed in the other Member State, where there 
is a risk of inappropriate taxation in the other Member State, or where tax has been or 
may  be  evaded  or  avoided  for  any  reason  in  the  other  Member  State,  and  especially 
where there is an artificial transfer of profits between enterprises in different Member 
States or where such transactions are carried out between enterprises in two Member 
States through a third country in order to obtain tax advantages. 

(11)  Spontaneous  exchanges  of  information  between  Member  States  should  also  be 

strengthened and encouraged.  

(12) 

It is important that officials of the tax administration of one Member State are allowed 
to be present in the territory of another Member State and may exercise the powers of 
inspection conferred on officials of the requested Member State.  

(13)  Since  the  tax  situation  of  one  or  more  persons  liable  to  tax  established  in  several 
Member  States  often  is  of  common  or  complementary  interest,  it  should  be  made 
possible  for  simultaneous  controls  to  be  carried  out  to  such  persons  by  two  or  more 
Member  States,  by  mutual  agreement  and  on  a  voluntary  basis,  whenever  such 
controls  appear  to  be  more  effective  than  controls  carried  out  by  only  one  Member 
State. 

(14) 

In view of the legal requirement in certain Member States that a taxpayer be notified 
of decisions and instruments concerning his tax liability and of the ensuing difficulties 
for  the  tax  authorities,  including  cases  where  the  taxpayer  has  relocated  to  another 

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Member State, it is desirable that, in such circumstances, the tax authorities should be 
able to call upon the cooperation of the competent authorities of the Member State to 
which the taxpayer has relocated. 

(15)  Feedback  should  be  given  to  the  Member  States  which  issued  a  request  for 
information or that sent an information automatically or spontaneously, to encourage 
international administrative cooperation. 

(16)  Collaboration  between  the  Member  States  and  the  Commission  is  necessary  for  the 
permanent  study  of  cooperation  procedures  and  the  sharing  of  experience  and  best 
practices in the fields considered.  

(17) 

It  is  important  for  the  efficiency  of  administrative  cooperation  that  information  and 
documents  obtained  under  this  Directive  may  be  used  also  for  other  purposes  in  the 
Member  State  that  received  them,  if  this  is  allowed  under  the  legislation  of  that 
Member State. It is also important that Member States may transmit that information 
to a third country. 

(18)  The  Member  State  requested  to  provide  information  may  refuse  to  transmit  it  if  it 
cannot  provide  such  information  for  legal  reasons  or  if  this  would  lead  to  the 
disclosure of a commercial, industrial or professional secret or commercial process or 
disclosure would be contrary to public policy. 

(19)  However, a Member States should not refuse to transmit the information because it has 
no  domestic  interest  or  because  the  information  relating  to  a  resident  of  the  other 
Member State is held by a bank, other financial institution, nominee or person acting 
in  an  agency  or  a  fiduciary  capacity  or  because  it  relates  to  ownership  interests  in  a 
person. 

(20) 

It should also be made clear that where a Member State provides a wider cooperation 
to  a  third  country  than  is  provided  for  under  this  Directive,  it  should  not  refuse  to 
provide such wider cooperation to the other Member States. 

(21)  Exchanges  of  information  should  be  made  through  standardized  forms,  formats  and 

channel of communication. 

(22)  An  evaluation  of  the  effectiveness  of  administrative  cooperation  should  be  made, 

especially on the basis of statistics. 

(23)  The measures necessary for the implementation of this Directive should be adopted in 
accordance  with  Council  Decision  1999/468/EC  of  28  June  1999  laying  down  the 
procedures for the exercise of implementing powers conferred on the Commission4.  

(24)  Since  the  objectives  of  the  action  to  be  taken,  namely  the  efficient  administrative 
cooperation between Member States to overcome the negative effects of the increasing 
globalisation  on  the  internal  market,  cannot  be  sufficiently  achieved  by  the  Member 
States  and  can  therefore,  by  reason  of  the  uniformity  and  effectiveness  required,  be 
better  achieved  at  Community  level,  the  Community  may  adopt  measures,  in 
accordance  with the principle of subsidiarity as set out in Article 5 of  the Treaty. In 
accordance  with  the  principle  of  proportionality,  as  set  out  in  that  Article,  this 
Directive does not go beyond what is necessary in order to achieve those objectives.

4 

OJ L 184, 17.7.1999, p. 23. 

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(25)  This Directive respects the fundamental rights and observes the principles which are 
recognised in particular by the Charter of Fundamental Rights of the European Union, 

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HAS ADOPTED THIS DIRECTIVE: 

CHAPTER I 

GENERAL PROVISIONS 

Article 1 

Subject matter 

This Directive lays down the rules and procedures under which administrative authorities of 
the Member States shall cooperate with each other and with the Commission with a view to 
the correct assessment of the taxes referred to in Article 2, as well as rules and procedures for 
the exchange of certain information by electronic means. 

Article 2 

Scope 

1. 

2. 

3. 

This  Directive  shall  apply  to  all  taxes  of  any  kind,  irrespective  of  the  manner  in 
which  they  are  levied,  except  to  indirect  taxes  already  covered  by  Community 
legislation on administrative cooperation between Member States.  

The Directive shall also apply to compulsory social security contributions payable to 
the  Member  State  or  a  subdivision  of  the  Member  State  or  to  social  security 
institutions established under public law.  

This Directive shall apply to taxes as referred to in paragraphs 1 and 2, levied within 
the territory to which the Treaty applies by virtue of Article 299 thereof.  

For the purposes of this Directive the following definitions shall apply: 

Article 3 

Definitions 

1. 

2. 

3. 

4. 

5. 

6. 

“competent  authority”  means  any  authority  designated  by  a  Member  State  for  the 
application of this Directive, either directly or by delegation;  

“administrative  enquiry”  means  all  controls,  checks  and  other  action  taken  by 
Member  States  in  the  performance  of  their  duties  with  a  view  to  ensuring  proper 
application of tax legislation; 

“exchange of information on request” means the exchange of information based on a 
request  made  by  the  requesting  Member  State  to  the  requested  Member  State  in  a 
specific case;  

“automatic  exchange”  means 
the  systematic  communication  of  predefined 
information  to  another  Member  State,  without  prior  request,  at  pre-established 
regular intervals or as and when that information becomes available;  

“spontaneous  exchange”  means  the  non-systematic  communication  at  any  moment 
and without prior request of information to another Member State;  

“person” means: 

(a) 

a natural person; 

(b) 

a legal person; or 

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(c)  where the legislation in force so provides, an association of persons recognised 
as  having  the  capacity  to  perform  legal  acts  but  lacking  the  legal  status  of  a 
legal person; 

(d) 

any  legal  arrangement,  including  partnerships  and  trusts,  whose  income  or 
capital are subject to any of the taxes covered by this Directive; 

“to grant access”, means to authorise access to the relevant electronic database and to 
obtain data by electronic means;  

“by  electronic  means”  means  using  electronic  equipment  for  the  processing, 
including  digital  compression,  and  storage  of  data,  and  employing  wires,  radio 
transmission, optical technologies or other electromagnetic means; 

“CCN network”, means the common platform based on the common communication 
network  (CCN),  developed  by  the  Community  for  all  transmissions  by  electronic 
means between competent authorities in the area of customs and taxation. 

Article 4 

Organisation 

Each  Member  State  shall  communicate  to  the  Commission  at  the  latest  one  month 
after  the  date  of  entry  into  force  of  this  Directive  a  competent  authority  for  the 
purposes of this Directive.  

The Commission shall inform all Member States of the competent authorities of the 
Member States.  

Each Member State shall designate a single taxation liaison office, which shall have 
principal  responsibility  for  contacts  with  other  Member  States  in  the  field  of 
administrative cooperation covered by this Directive.  

It shall inform the Commission and the other Member States thereof. 

The  competent  authority  of  each  Member  State  may  designate  taxation  liaison 
departments.  

The  taxation  liaison  department  shall  be  any  office  other  than  the  taxation  liaison 
office  with  a  specific 
territorial  competence  or  a  specialised  operational 
responsibility. It shall be authorised to exchange directly information on the basis of 
this Directive.  

The  taxation  liaison  office  shall  be  responsible  for  keeping  the  list  of  those 
departments up to date and making it available to the taxation liaison offices of the 
other Member States concerned and to the Commission. 

The  competent  authority  of  each  Member  State  may  designate  competent  officials 
who are authorised to directly engage in administrative cooperation on  the  basis of 
this Directive, except where a specific authorisation is required under this Directive.  

The  taxation  liaison  office  shall  be  responsible  for  keeping  the  list  of  competent 
officials up to date and making it available to the taxation liaison offices of the other 
Member States concerned and to the Commission. 

The  officials  engaged  in  administrative  cooperation  on  the  basis  of  this  Directive 
shall in any case be deemed to be competent officials for that purpose, in accordance 
with arrangements laid down by the competent authorities.  

7. 

8. 

9. 

1. 

2. 

3. 

4. 

5. 

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6. 

7. 

1. 

2. 

1. 

2. 

3. 

Where  a  taxation  liaison  department  or  a  competent  official  sends  or  receives  a 
request  or  a  reply  to  a  request  for  cooperation,  it  shall  inform  the  taxation  liaison 
office of its Member State under the procedures laid down by that Member State.  

Where  a  taxation  liaison  department  or  a  competent  official  receives  a  request  for 
cooperation requiring action outside its territorial or operational competence, it shall 
forward such request without delay to the taxation liaison office of its Member State 
and inform the authority that made the request. In such a case, the period laid down 
in Article 8 shall start the day after the request for cooperation has been forwarded to 
the taxation liaison office. 

CHAPTER II  

EXCHANGE OF INFORMATION 

SECTION I  

EXCHANGE OF INFORMATION ON REQUEST 

Article 5 

Procedure of the exchange of information on request 

At  the  request  of  the  taxation  liaison  office,  a  taxation  liaison  department  or  any 
competent  official  of  a  Member  State  (hereinafter  "the  requesting  authority"),  the 
taxation  liaison  office,  a  taxation  liaison  department  or  any  competent  official  of  a 
Member  State  who  receives  a  request  for  cooperation  (hereinafter  "the  requested 
authority"),  shall  communicate  information  which  may  be  relevant  for  the  correct 
assessment of taxes referred to in Article 2, including any information relating to a 
specific case or cases. 

The  requested  authority  shall  communicate to  the  requesting  authority  any  relevant 
information  it  has  in  its  possession  or  it  obtains  as  a  result  of  administrative 
enquiries.  

Article 6 

Administrative enquiries 

The  requested  authority  shall  arrange  for  the  carrying  out  of  any  administrative 
enquiries necessary to obtain the information referred to in Article 5. 

The request referred to in Article 5(1) may contain a reasoned request for a specific 
that  no 
the  requested  authority 
administrative  enquiry.  If 
administrative  enquiry  is  necessary,  it  shall  immediately  inform  the  requesting 
authority of the reasons thereof.  

the  view 

takes 

In order to obtain the requested information or to conduct the administrative enquiry 
requested, the requested authority shall follow the same procedures as it would when 
acting on its own initiative or at the request of another authority in its own Member 
State. 

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1. 

2. 

3. 

4. 

5. 

6. 

1. 

2. 

Article 7 

Time limits  

The  requested  authority  shall  provide  the  information  referred  to  in  Article  5  as 
quickly as possible, and no later than six months following the date of receipt of the 
request.  

However, where the requested authority is already in possession of that information, 
the information shall be transmitted within one month of that date. 

In certain special categories of cases, including complex cases, deadlines other than 
those  provided  for  in  paragraph  1  may  be  agreed  between  the  requested  and  the 
requesting authorities. 

The requested authority shall confirm immediately and in any event no later than five 
working days after receipt, by electronic means receipt of a request to the requesting 
authority.  

The  requested  authority  shall  notify  the  requesting  authority  of  any  deficiencies  in 
the  request  and  of  the  need  for  any  additional  background  information,  within  one 
month of receipt of the request.  

Where the requested authority is unable to respond to the request by the deadline, it 
shall  inform  the  requesting  authority  immediately  and  in  any  event  within  three 
months  of  the  receipt  of  the  request,  of  the  reasons  for  its  failure  to  do  so,  and  the 
date by which it considers it might be able to respond.  

Where the requested authority is unable to respond to the request for information or 
refuses  to  respond,  it  shall  inform  the  requesting  authority  immediately  of  the 
reasons, and in any event within one month of receipt of the request. 

SECTION II  

AUTOMATIC EXCHANGE OF INFORMATION  

Article 8 

Scope and conditions of automatic exchange of information  

The  competent  authority  of  each  Member  States  shall,  by  automatic  exchange, 
forward  information  on  specific  categories  of  income  and  capital  to  the  other 
Member States. 

The Commission shall adopt, in accordance with the procedure referred to in Article 
24(2), within two years of the entry into force of this Directive: 

(a) 

the categories of income and capital to be covered 

(b) 

the type of information to be exchanged; 

(c) 

any  specific  condition  or  restriction  within  the  categories  referred  to  in  point 
(a); 

(d) 

the frequency of the exchanges; 

(e) 

the practical arrangements for the exchange of information. 

3. 

In  addition  to  the  categories  of  income  and  capital  referred  to  in  paragraph  2,  the 
competent  authority  of  each  Member  State  shall,  by  automatic  exchange,  forward 

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information necessary for the correct assessment of taxes referred to in Article 2 to 
the  competent  authority  of  any  other  Member  State  concerned,  in  any  of  the 
following cases: 

(a)  where taxation is deemed to take place in the Member State of destination of 
the information, and the effectiveness of the control system may be facilitated 
by the information provided by the Member State of origin, 

(b)  where a Member State has grounds to believe that a failure of compliance with 
tax laws has been committed or is likely to have been committed in the other 
Member State, 

(c)  where there is a risk of inappropriate taxation in the other Member State, 

(d)  where  tax  has  been  or  may  be  evaded  or  avoided  for  any  reason  in  the  other 
Member  State,  and  especially  where  there  is  an  artificial  transfer  of  profits 
between enterprises in different Member States or where such transactions are 
carried out between enterprises in two Member States through a third country 
in order to obtain tax advantages. 

4. 

Where  Member  States  conclude  bilateral  or  multilateral  agreements  with  a  view  to 
the  correct  assessment  of  the  taxes  referred  to  in  Article  2,  they  shall  provide  for 
automatic  exchange  of  information  relating  to  certain  categories  of  income  and 
capital.  For  that  purpose,  they  shall  specify  in  those  agreements  the  following 
elements: 

(a) 

the categories of income and capital to be covered; 

(b) 

the type of information to be exchanged; 

(c) 

any  specific  condition  or  restriction  within  the  categories  referred  to  in  point 
(a); 

(d) 

the frequency of the exchanges; 

(e) 

the practical arrangements for the exchange of information.  

Member  States  shall  forward  to  the  Commission  the  agreements  they  have 
concluded.  The  Commission  shall  make  these  agreements  available  to  all  the  other 
Member States. 

The  Commission  shall  adopt  a  model  agreement  in  accordance  with  the  procedure 
referred to in Article 24(2). 

SECTION III  

SPONTANEOUS EXCHANGE OF INFORMATION 

Article 9 

Scope and conditions 

The competent authorities of the Member States may, in any case by spontaneous exchange, 
forward to each other any information referred to in Article 1 of which they are aware, and in 
particular  where  taxation  is  deemed  to  take  place  in  the  Member  State  of  destination  of  the 
information,  and  where  the  effectiveness  of  the  control  system  may  be  facilitated  by  the 
information provided by the Member State of origin.  

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OTHER FORMS OF ADMINISTRATIVE COOPERATION 

CHAPTER III 

SECTION I 

PRESENCE IN ADMINISTRATIVE OFFICES AND PARTICIPATION IN 
ADMINISTRATIVE ENQUIRIES 

Article 10 

Scope and conditions 

1. 

2. 

3. 

By  agreement  between  the  requesting  authority  and  the  requested  authority  and  in 
accordance with the arrangements laid down by the latter, officials authorised by the 
requesting  authority  may,  with  a  view  to  exchanging  the  information  referred  to  in 
Article 1,  

(a) 

be  present  in  the  offices  where  the  administrative  authorities  of  the  Member 
State in which the requested authority is established carry out their duties;  

(b)  be  present  during  administrative  enquiries  carried  out  in  the  territory  of  the 

requested Member State. 

Where the requested information is contained in documentation to which the officials 
of the requested authority have access, the officials of the requesting authority shall 
be given copies of such documentation  

Where  officials  of  the  requesting  authority  are  present  during  administrative 
enquiries  pursuant  to  the  paragraph  1,  they  may  exercise  the  powers  of  inspection 
conferred  on  officials  of  the  requested  authority,  under  the  condition  that  they 
exercise  these  powers  in  accordance  with  the  laws,  regulations  or  administrative 
provisions of the requested Member State. 

Any refusal by the person under investigation to respect the inspection measures of 
the officials of the requesting authority shall be treated by the requested authority as 
if this refusal was committed against officials of the latter authority. 

Officials authorised by the requesting Member State present in another Member State 
in accordance with paragraph 1 must at all times be able to produce written authority 
stating their identity and their official capacity.  

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SECTION II 

SIMULTANEOUS CONTROLS 

Article 11 

Simultaneous controls 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

Where two or more Member States agree to conduct simultaneous controls, in their 
own territory, of one or more persons of common or complementary interest to them 
with a view to exchanging the information thus obtained, paragraphs 2, 3 and 4 shall 
apply.  

The  competent  authority  in  each  Member  State  shall  identify  independently  the 
persons  for  whom  it  intends  to  propose  a  simultaneous  control.  It  shall  notify  the 
competent authority in the other Member States concerned of any cases for which it 
proposes a simultaneous control, giving reasons for its choice.  

It shall specify the period of time during which those controls shall be conducted. 

The  competent  authority  of  each  Member  State  concerned  shall  decide  whether  it 
wishes to take part in simultaneous controls. The competent authority of the Member 
State shall confirm its agreement or communicate its reasoned refusal to the authority 
that proposed a simultaneous control. 

Each  competent  authority  of  the  Member  States  concerned  shall  appoint  a 
representative  with  responsibility  for  supervising  and  coordinating  the  control 
operation.  

SECTION III 

ADMINISTRATIVE NOTIFICATION 

Article 12 

Request for notification 

At the request of the competent authority of a Member State, the competent authority 
of  another  Member  State  shall,  in  accordance  with  the  rules  governing  the 
notification  of  similar  instruments  in  the  requested  Member  State,  notify  the 
addressee  of  any  instruments  and  decisions  which  emanate  from  the  administrative 
authorities of the requesting Member State and concern the application in its territory 
of legislation on taxes covered by this Directive. 

Requests for notification shall indicate the subject of the instrument or decision to be 
notified and shall specify the name and address of the addressee, together with any 
other information which may facilitate identification of the addressee. 

The  requested  authority  shall  inform  the  requesting  authority  immediately  of  its 
response and, in particular, of the date of notification of the decision or instrument to 
the addressee. 

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SECTION IV 

FEEDBACK 

Article 13 

Conditions 

1. 

2. 

Member  States’  competent  authorities  shall  send  feedback  to  other  Member  States, 
as soon as possible and no later than three months after making use of any answer to 
a request for information or spontaneous information  

Member  States’  competent  authorities  shall  send  feedback  on  automatic  exchanges 
of  information  to  the  other  Member  States  concerned  once  a  year.  Where  the 
feedback  relates  to  information  granted  pursuant  to  Article  8(1)  (2),  the  date  by 
which  the  feedback  shall  be  sent  shall  be  determined  in  accordance  with  the 
procedure  referred  to  in  Article  23(2).  Where  the  feedback  relates  to  information 
granted  pursuant  to  Article  8(3)  (4),  the  date  by  which  the  feedback  shall  be  sent 
shall be determined by agreement between the Member States concerned.  

3. 

The Commission shall determine the practical arrangements in accordance with the 
procedure referred to in Article 24(2). 

SECTION V 

SHARING OF BEST PRACTICES AND EXPERIENCE 

Article 14 

Scope and conditions 

1. 

2. 

The  Member  States  shall,  together  with  the  Commission,  monitor  administrative 
cooperation pursuant to this Directive and shall share their experience, with a view to 
improving  such  cooperation  and,  where  appropriate,  drawing  up  rules  in  the  fields 
concerned. 

The Commission may adopt guidelines in accordance with the procedure referred to 
in Article 23(3), in particular as regards:  

a) 

b) 

c) 

country profiles aimed at sharing information on national legislation enforced 
in each Member State in the field of administrative cooperation for taxation; 

risk management techniques; 

any  other  action  deemed  necessary  for  sharing  best  practices  and  sharing 
experience. 

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CONDITIONS GOVERNING ADMINISTRATIVE COOPERATION 

CHAPTER IV 

Article 15 

1. 

2. 

3. 

Disclosure of information and documents 

Information  and  documents  obtained  by  the  requesting  or  requested  authority 
pursuant  to  this  Directive  may  be  disclosed  to  other  authorities  within  the  same 
Member State, in so far as this is allowed under the legislation of that Member State, 
even  if  that  information  could  be  used  for  other  purposes  than  those  referred  to  in 
Article 2. 

Where a competent authority of a Member State considers that information which it 
has  received  from  the  competent  authority  of  another  Member  State  is  likely  to  be 
useful  to  the  competent  authority  of  a  third  Member  State,  it  may  transmit  that 
information  to  the  latter  competent  authority,  provided  this  transmission  is  in 
accordance with the rules and procedures laid down in this Directive. 

Information, reports, statements and any other documents, or certified true copies or 
extracts  thereof,  obtained  by  the  requested  authority  and  communicated  to  the 
requesting  authority  in  accordance  with  this  Directive  may  be  invoked/used  as 
evidence by the competent bodies of the Member State of the requesting authority on 
the  same  basis  as  similar  information,  reports,  statements  and  any  other  documents 
provided by another authority of that country. 

Article 16 

Obligations 

1. 

The requested authority in one Member State shall provide a requesting authority in 
another Member State with the information referred to in Article 5 provided that: 

a) 

b) 

the  number  and  the  nature  of  the  requests  for  information  made  by  the 
requesting authority within a specific period do not impose a disproportionate 
administrative burden on that requested authority; 

the requesting authority has exhausted the usual sources of information which 
it  could  have  used  in  the  circumstances  to  obtain  the  information  requested, 
without running the risk of jeopardising the achievement of the desired end. 

This  Directive  shall  impose  no  obligation  upon  a  Member  State  from  which 
information  is  requested  to  carry  out  inquiries  or  to  communicate  information,  if  it 
would be contrary to the legislation of that Member State to conduct such inquiries 
or to collect the information requested for its own purposes. 

The  competent  authority  of  a  requested  Member  State  may  decline  to  provide 
information  where  the  requesting  Member  State  is  unable,  for  legal  reasons,  to 
provide similar information.  

The provision of information may be refused where it would lead to the disclosure of 
a  commercial,  industrial  or  professional  secret  or  of  a  commercial  process,  or  of 
information whose disclosure would be contrary to public policy. 

2. 

3. 

4. 

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5. 

6. 

1. 

2. 

The  requested  authority  shall  inform  the  requesting  authority  of  the  grounds  for 
refusing a request for information. 

Original  documents  shall  be  provided  only  where  this  is  not  contrary  to  the 
provisions  in  force  in  the  Member  State  in  which  the  requested  authority  is 
established.  

Article 17 

Limits  

If information is requested by a Member State in accordance with this Directive, the 
other Member State shall use its measures aimed at gathering information to obtain 
the requested information, even though that other Member State may not need such 
information  for  its  own  tax  purposes.  This  obligation  is  without  prejudice  to 
paragraphs  2,  3  and  4  of  Article  16,  the  invocation  of  which  shall  in  no  case  be 
construed  as  permitting  a  Member  State  to  decline  to  supply  information  solely 
because it has no domestic interest in such information. 

In no case shall Article 16(2) and (4) be construed as permitting a requested authority 
of a Member State to decline to supply information concerning a person resident for 
tax  purposes  in  the  Member  State  of  the  requesting  authority  solely  because  this 
information is held by a bank, other financial institution, nominee or person acting in 
an  agency  or  a  fiduciary  capacity  or  because  it  relates  to  ownership  interests  in  a 
person. 

Article 18 

Wider cooperation 

Where a Member State provides a wider cooperation to a third country than is provided for 
under this Directive, it may not refuse to provide such wider cooperation to the other Member 
State.  

Article 19 

Standard forms and computerised formats 

1. 

2. 

3. 

Requests for information and for administrative enquiries pursuant to Article 5 and 
their  answers,  acknowledgement,  request  for  additional  background  information, 
inability  or  refusal  pursuant  to  Article  6  shall,  as  far  as  possible  be  sent  using  a 
standard form adopted by the Commission in accordance with the procedure referred 
to in Article 24(2). 

The  standard  forms  may  be  accompanied  by  reports,  statements  and  any  other 
documents, or certified true copies or extracts thereof. 

information  pursuant 

Spontaneous 
to  Article  8,  requests  for  administrative 
notifications pursuant to Article 12 and feedback information pursuant to Article 13 
shall be sent using the standard form referred to in paragraph 1. 

Automatic  exchanges  of  information  pursuant  to  Article  7  shall  be  sent  using  a 
standard  computerised  format  aimed  at  facilitating  the  automatic  exchange  of 
information and based on the existing computerised format in application of Article 9 

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of Council Directive 2003/48/EC5, to be used for all types of automatic exchange of 
information, adopted by the Commission in accordance with the procedure referred 
to in Article 24(2). 

Article 20 

Practical arrangements 

1. 

Information  communicated  pursuant  to  this  Directive  shall,  as  far  as  possible,  be 
provided  by  electronic  means  using  the  common  communication  network/common 
system interface (CCN network). 

Where  necessary,  the  Commission  shall  adopt  practical  arrangements  necessary  for 
the  implementation  of  the  first  subparagraph  in  accordance  with  the  procedure 
referred to in Article 24(2). 

2. 

The Commission will be responsible for whatever development of the CCN network 
necessary to permit the exchange of this information between Member States.  

Member  States  will  be  responsible  for  whatever  development  of  their  systems 
necessary to enable this information to be exchanged using the CCN network.  

Member States shall waive all claims for the reimbursement of expenses incurred in 
applying this Directive except, where appropriate, in respect of fees paid to experts. 

Persons  duly  accredited  by  the  Security  Accreditation  Authority  of  the  European 
Commission may have access to this information only in so far as it is necessary for 
the care, maintenance and development of the CCN network 

Requests for cooperation, including requests for notification, and attached documents 
may be made in any language agreed between the requested and requesting authority.  

Those  requests  shall  be  accompanied  by  a  translation  into  the  official  language  or 
one of the official languages of the Member State in which the requested authority is 
established  only  in  special  cases  when  the  requested  authority  states  its  reason  for 
requesting a translation. 

The  Commission  may  adopt  a  minimum  threshold  of  taxes  involved  triggering  a 
request  for  cooperation,  an  automatic  exchange  of  information  or  a  spontaneous 
exchange  of  information  in  accordance  with  the  procedure  referred  to  in  Article 
24(2).  

3. 

4. 

5. 

Article 21 

Specific obligations 

1. 

Member States shall take all necessary measures to: 

a) 

b) 

c) 

ensure  effective  internal  coordination  between  the  authorities  referred  to  in 
Article 4; 

establish direct cooperation between the authorities referred to in Article 4; 

ensure  the  smooth  operation  of  the  administrative  cooperation  arrangements 
provided for in this Directive. 

5 

OJ L 157, 26.6.2003, p. 38. 

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2. 

1. 

2. 

3. 

4. 

1. 

2. 

The Commission shall communicate to each Member State any general information 
concerning  the  implementation  and  application  of  this  Directive  which  it  receives 
and which it is able to provide. 

CHAPTER V  

RELATIONS WITH THE COMMISSION 

Article 22 

Evaluation 

The Member States and the Commission shall examine and evaluate the functioning 
of administrative cooperation provided for in this Directive.  

Member  States  shall  communicate  to  the  Commission  any  relevant  information 
necessary  for  the  evaluation  of  the  effectiveness  of  administrative  cooperation  in 
accordance with this Directive in combating tax evasion and tax avoidance. 

The Member States shall communicate to the Commission a yearly assessment of the 
effectiveness of the automatic exchange of information as referred to in Article 8, as 
well as the practical results achieved. The form and the conditions of communication 
of that yearly assessment shall be adopted by the Commission in accordance with the 
procedure referred to in Article 24(2).  

The Commission shall, in accordance with the procedure referred to in Article 24(2), 
determine a list of statistical data which shall be provided by the Member States for 
the purposes of evaluation of this Directive. 

CHAPTER VI  

RELATIONS WITH THIRD COUNTRIES 

Article 23 

Exchange of information with third countries 

Where the competent authority of a Member State receives information with a view 
to the correct assessment of the taxes referred in Article 2 from a third country, that 
authority  shall  provide  that  information  to  the  competent  authorities  of  Member 
States  for  which  that  information  might  be  useful  and,  in  any  event,  to  all  those 
which  request  it,  in  so  far  as  this  is  not  excluded  by  international  agreements  with 
that third country.  

Member States shall ensure that future agreements they conclude with third countries 
contain no such exclusion. 

Competent  authorities  may  communicate,  in  accordance  with  their  domestic 
provisions  on  the  communication  of  personal  data  to  third  countries,  information 
obtained in accordance with this Directive to a third country, provided that all of the 
following conditions are met: 

(a) 

(b) 

all competent authorities which supplied the information have consented to that 
communication;  

the  third  country  concerned  has  given  an  undertaking  to  provide  the 
cooperation  required  to  gather  evidence  of  the  irregular  or  illegal  nature  of 

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transactions  which  appear  to  contravene  or  constitute  an  abuse  of  tax 
legislation. 

CHAPTER VII  

GENERAL AND FINAL PROVISIONS 

Article 24 

Committee 

1. 

2. 

3. 

The Commission shall be assisted by a committee referred to as the “Committee on 
Administrative Cooperation for Taxation”. 

Where  reference  is  made  to  this  paragraph,  Articles  5  and  7  of  Decision 
1999/468/EC shall apply.  

The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at three 
months. 

The Committee on Administrative Cooperation for Taxation shall, in addition to its 
tasks  under  paragraph  2,  examine  any  matters  raised  by  its  chairman,  either  on  his 
own initiative or at the request of the representative of a Member State, concerning 
the application of this Directive. 

Article 25 

Reporting 

Not later than five years from the date of transposition of this Directive as referred to in the 
first  sentence  of  paragraph  1  of  Article  27,  the  Commission  shall  submit  a  report  on  the 
application of this Directive to the European Parliament and to the Council. 

Article 26 

Repeal of Directive 77/799/EEC 

Directive 77/799/EEC is repealed with effect from 1 January 2010 

References made to the repealed Directive shall be construed as references to this Directive. 

Article 27 

Transposition 

1. 

Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative 
provisions  necessary  to  comply  with  this  Directive  by  1 January 2010  at  the  latest. 
They  shall  forthwith  communicate  to  the  Commission  the  text  of  those  provisions 
and a correlation table between those provisions and this Directive. 

When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  be  accompanied  by  such  a  reference  on  the  occasion  of  their  official 
publication. Member States shall determine how such reference is to be made. 

2. 

Member States shall communicate to the Commission the text of the main provisions 
of national law which they adopt in the field covered by this Directive. 

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Article 28 

Final provisions 

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This Directive shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

This Directive is addressed to the Member States. 

Article 29 

. 

. 

Done at Brussels,  

For the Council 
The President 

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