Proposal for a COUNCIL DIRECTIVE amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation
Date: 2015-03-18
Institutions: European Commission
Subjects: European tax cooperation, administrative cooperation, cross-border cooperation, exchange of information, prevention of delinquency, tax avoidance, tax evasion, tax inspection













EUR-Lex - 52015PC0135 - EN











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52015PC0135

Proposal for a COUNCIL DIRECTIVE amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation /* COM/2015/0135 final - 2015/0068 (CNS) */









EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
1.1.        General context
Businesses have traditionally viewed tax planning as legitimate on the
grounds that they use legal arrangements to reduce their tax liabilities.
However, tax planning has become
more elaborate in recent years, developing across jurisdictions and shifting
taxable profits towards states with beneficial tax regimes. This "aggressive" form of tax planning can take a multitude of forms,
such as taking advantage of the technicalities of a tax
system or of mismatches between two or more tax systems for the purpose of
reducing or avoiding tax liabilities. Its consequences
include double deductions (e.g. the same expense is deducted in both the state
of source and the state of residence) and double non-taxation (e.g. income is
not taxed in either its state of source or in the recipient’s state of
residence).[1] Such practices are in many cases assisted by the rulings issued by
national administrations, which confirm to a company how a specific transaction
will be taxed under existing legislation and therefore provide legal certainty
for the structure put in place. Even though Member
States are obliged to ensure that they issue tax rulings in compliance with
existing EU and national law, a lack of transparency regarding such rulings may
impact on other countries which have links with the
beneficiaries of the rulings. 
Tax avoidance, as well as tax fraud and tax
evasion, have an important cross-border dimension. Globalisation and the increasing mobility of taxpayers can make it
difficult for Member States to assess tax bases properly.  This phenomenon can
affect the functioning of taxation systems and entail tax avoidance and tax
evasion and thus jeopardise the functioning of the Internal Market. 
Therefore Member States can only address
this problem effectively if they agree to take common action. For this reason,
improving administrative cooperation between Member States' tax administrations is a key objective of the
Commission's strategy.
Council Directive 2011/16/EU was adopted to
replace an earlier Directive dealing with assistance between Member States
(Council Directive 77/799/EEC), as a response to Member States’ need for enhanced administrative
cooperation in the field of taxation.
The purpose of the present proposal is to
ensure that Directive 2011/16/EU provides for comprehensive and effective
administrative co-operation between tax administrations by providing for the
mandatory automatic exchange of information regarding advance cross-border rulings
and advance pricing arrangements, a particular type of advance cross border
ruling used in the area of transfer pricing. Tax driven structures which lead
to a low level of taxation of income in the Member State issuing the ruling may
leave only low amounts of income to be taxed in other Member States involved
thus eroding their tax bases. 
The proposal requires Member States to
automatically exchange basic information about advance cross-border rulings and
advance pricing arrangements with all other Member States. This is based on the
principle that it is other Member States which are best placed to assess the
potential impact and relevance of such rulings, rather than the Member State
giving the ruling. In appropriate cases the Member States receiving the
information can request further more detailed information. 
The proposal has been specifically designed
to allow the automatic information exchange on rulings to build on the existing
rules in Directive 2011/16/EU relating to the practical arrangements for
exchanging information including the use of standard forms. It is also in line
with international developments at the level of the OECD and its work on BEPS.
During 2012, the Code of Conduct Group for
Business Taxation[2]
reviewed developments in Member States’ procedures regarding tax rulings. The
Group identified the types of cross-border rulings on which information should
be exchanged spontaneously and recommended the development of a "Model
Instruction" that could be used as a reference by the Member States for
internal application.[3]
The Model Instruction specified that information on cross-border rulings should
be sent spontaneously in accordance with Article 9 of Directive 2011/16/EU,
using standard electronic forms, by the electronic means provided for in the
Directive, at the latest one month after the ruling is issued in line with the
deadline in Article 10 of the Directive. It also required Member States to
ensure proper communication channels on this subject between Member States and
good quality training and guidance for those issuing rulings. It also provided
guidance on the content of the information to be provided spontaneously.
However, this Model Instruction is not legally binding. There is, in practice,
little information exchange between Member States on their advance tax rulings
or transfer pricing arrangements even where these have an impact on other
countries. 
Therefore a more systematic and binding
approach to information exchange on rulings appears necessary within the EU so
as to ensure that, where one Member State issues an advance tax ruling or
transfer pricing arrangement, any other Member State affected is in a position
to take any necessary corresponding action. 
The Commission committed to making such a
proposal for the automatic exchange of information on cross-border rulings on
16 December 2014 and this is reflected in the Commission's 2015 Work Programme.[4]
2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS
2.1.        Consultations in the
context of the Action Plan on tax fraud and tax evasion and of the
Recommendations (COM (2012) 722) and other fora
The European Parliament adopted a
resolution on 21 May 2013,[5]
whereby it welcomed the Commission's Action Plan and its Recommendations, urged
Member States to follow up their commitments and embrace the Action Plan, and
emphasised that the EU should take a leading role in global discussions on the
fight against tax fraud, tax avoidance and tax havens, in particular in
relation to promoting the exchange of information.
The European Economic and Social Committee
adopted an opinion on 17 April 2013.[6] 
The Committee endorsed the Commission's Action Plan and supported its efforts
to find practical solutions aimed at reducing tax fraud and tax evasion. 
Over recent years, Member States have
worked in the Code of Conduct Group to improve the exchange of information
regarding cross-border rulings and in the area of transfer pricing. Conclusions
of this Code of Conduct Group have been communicated to the Council on a regular
basis in the form of reports.[7]

2.2.        Member States
This Directive is based on the Model
Instruction agreed among the Member States in 2014 and therefore reflects work
already done by Member States’ delegates in several European fora. Member States have been discussing the principle of information
exchange on tax rulings for some time; however this has not so far led to an
effective framework for such an exchange. 
2.3.        Subsidiarity and
Proportionality
This proposal complies with the principles
of Subsidiarity and Proportionality as set out in Article 5, paragraphs 3 and
4, respectively, of the Treaty on European Union.
Article 115 TFEU provides for the
approximation of such laws, regulations or administrative provisions of the
Member States which directly affect the establishment or functioning of the
internal market and make the approximation of laws necessary. 
The objective of ensuring that all Member
States have sufficient information on advance CBRs and APAs cannot be
sufficiently achieved through non-coordinated action implemented by each Member
State individually. Thus, the exchange of information on rulings that
potentially affect the tax bases of more than one Member State requires a
common and compulsory approach. Moreover, the cross-border element is inherent
in the proposed action. Effective information on advance cross-border rulings
and advance pricing arrangements can therefore only be achieved through action
at Union level.
While the Model
Instruction may be regarded as improving matters, a legislative basis is
regarded as more effective. Moreover, as long as the issuing Member State is
the one having to assess, based on its own legal framework, the relevance of a
given ruling for other Member States, a lack of transparency will remain. Taxpayers
may take advantage of the absence of common rules for the exchange of
information to set up structures that shift profits to low-tax countries, which
may not be the countries where economic activities generating the profits are
performed and where value is created. [8]
As tax rulings are often granted for cross-border structures, Member States
depend on each other to get the complete picture. For this reason Member States
working together are in a better position than each Member State acting individually
to ensure the effectiveness and completeness of the system of exchange of
information on tax rulings. A harmonized EU approach would be more effective to
ensure tax transparency and cooperation between tax administrations in fighting
tax avoidance. 
The specific problem identified as the object
of a policy response is the lack of transparency on tax rulings with
cross-border relevance, which has negative effects, notably on the proper
functioning of the Internal Market. The policy response is limited to
addressing the rulings with a cross-border element. It consists of a two-step
approach according to which a basic set of information as defined in the
Directive would have to be provided to all EU Member States. The information to
be shared has to strike the balance between being on the one hand as concise as
possible and on the other hand providing sufficient information for the
receiving Member State to judge whether it should request more information. In
a second step, those Member States that can demonstrate that the information is
foreseeably relevant to them can request more detailed information under the
existing provisions of the Directive. Thus, the proposal
represents the most proportionate answer to the identified problem because it
limits itself to advance tax rulings and advance pricing arrangements with a
cross-border element.  It is also based on the automatic exchange of basic
information intended to allow each Member State to determine whether further
more detailed information should be requested. The proposed amendments
consequently do not go beyond what is necessary to address the issues at stake
and, in that way, to achieve the Treaties' objectives of a proper and effective
functioning of the Internal Market. 
2.4.        Staff Working Document
The accompanying Staff Working Document
evaluates the policy options on the basis of the criteria of effectiveness,
efficiency, coherence and social impacts and fundamental rights. An analysis of
options has been prepared by the Commission to support the policy option
chosen. 
3.           LEGAL ELEMENTS OF THE
PROPOSAL
The objective of this proposal is to ensure
that information on advance cross-border rulings and advance pricing
arrangements is automatically exchanged between Member States when the
conditions laid down in the new Article 8a are fulfilled. 
For this purpose, the proposal modifies
Directive 2011/16/EU as amended by Directive 2014/107/EU[9] by introducing a
specific requirement for the automatic exchange of information on advance
cross-border rulings and advance pricing arrangements.  
In particular, Article 1(3) of the proposed
Directive inserts a new Article 8a into the existing Directive, which sets out
the scope and conditions for the mandatory automatic exchange of information on
types of tax rulings and transfer pricing arrangements as defined in the 
proposed Directive, inserted by Article 1(1) of the proposal. Article 8a(1)
provides that the competent authorities of a Member State shall, by automatic
exchange, communicate information about defined tax rulings that they issue or
amend to the competent authorities of all other Member States. This obligation
is extended to rulings issued in the ten years before the date on which the
proposed Directive takes effect that are still valid on the date of entry into
force of the Directive (Article 8a(2)).
Article 1(6) of the proposed Directive
enables the possible creation by the Commission of a secure central directory
concerning information communicated in the framework of this proposal. This
central directory would both facilitate the exchange of information and support
Member States in their job of studying and reacting to rulings exchanged
between Member States. 
The proposed Directive also updates the
rules in the 2011 Directive concerning the provision of feedback, the practical
arrangements for information exchange and the evaluation of the administrative
cooperation so as to extend them to the automatic information exchange on
advance cross-border rulings and advance pricing arrangements.
The subject-matter of these modifications
falls within the same legal basis as Directive 2011/16/EU, i.e. Article 115 of
the Treaty on the Functioning of the European Union (TFEU), which aims to
ensure the proper functioning of the Internal Market.
4.           BUDGETARY IMPLICATION
The impact of the proposal on the EU Budget
is presented in the financial statement accompanying the proposal, and will be
met within available resources. The costs of the additional IT tools and the
possible central directory that the Commission may develop in the future to
facilitate the communication of information between Member States as well as to
provide for its storage would be funded out of the FISCALIS 2020 programme
provided for in Regulation (EU) 1286/2013 which provides financial support for
activities to improve administrative cooperation between tax authorities in the
EU.
2015/0068 (CNS)
Proposal for a
COUNCIL DIRECTIVE
amending Directive 2011/16/EU as regards
mandatory automatic exchange of information in the field of taxation
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 115 thereof,
Having regard to the proposal from the
European Commission,
After transmission of the draft legislative
act to the national parliaments,
Having regard to the opinion of the
European Parliament[10], 
Having regard to the opinion of the
European Economic and Social Committee[11],

Having regard to the opinion of the
Committee of the Regions[12],

Acting in accordance with a special legislative
procedure,
Whereas:
(1)       The challenge posed by cross-border tax avoidance,
aggressive tax planning and harmful tax competition has increased considerably
and has become a major focus of concern within the Union and at global level.
Tax base erosion is considerably reducing national tax revenues, which hinders
Member States in applying growth-friendly tax policies. In particular, rulings
concerning tax-driven structures lead to a low level of taxation of
artificially high amounts of income in the country giving the advance ruling
and may leave artificially low amounts of income to be taxed in any other
countries involved. An increase in transparency is therefore urgently required.
The tools and mechanisms established by Council Directive 2011/16/EU[13] need to be enhanced in order to achieve this. 
(2)       The European Council, in
its conclusions of 18 December 2014, underlined the urgent need to advance
efforts in the fight against tax avoidance and aggressive tax planning, both at
the global and Union levels. Stressing the importance of transparency, the
European Council welcomed the Commission’s intention to submit a proposal on
the automatic exchange of information on tax rulings in the Union. 
(3)       Directive 2011/16/EU
provides for mandatory spontaneous exchange of information between Member
States in five specific cases and within certain deadlines. The spontaneous exchange of information in cases where the competent
authority of one Member State has grounds for supposing that there may be a
loss of tax in another Member State already applies to tax rulings that a
Member State gives to a specific taxpayer regarding the interpretation or
application of tax provisions in the future and that have a cross-border
dimension.
(4)       However, the efficient
spontaneous exchange of information in respect of advance cross-border rulings
and advance pricing arrangements is hindered by several important practical
difficulties such as the discretion permitted to the issuing Member State to
decide which other Member States should be informed.   
(5)       The possibility that 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 should
not apply to provisions of mandatory automatic exchange of information on
advance cross-border rulings and advance pricing arrangements in order not to
reduce the effectiveness of these exchanges. The limited nature of the information
that is required to be shared with all Member States should ensure sufficient
protection of those commercial interests.
(6)       In order to reap the
benefits of the mandatory automatic exchange of advance cross-border rulings
and advance pricing arrangements, the information should be communicated
promptly after they are issued and therefore regular intervals for the
communication of the information should be established. 
(7)       The mandatory automatic
exchange of advance cross-border rulings and advance pricing arrangements
should in each case include communication of a defined set of basic information
to all Member States. The Commission should adopt any measures necessary to
standardise the communication of such information under the procedure laid down
in Directive 2011/16/EC for establishing a standard form to be used for the
exchange of information. That procedure should also be used in the adoption of
any necessary measures and practical arrangements for the implementation of the
information exchange. 
(8)       Member States should
exchange the basic information to be communicated also with the Commission.
This would enable the Commission at any point in time to monitor and evaluate
the effective application of the automatic exchange of information on advance
cross-border rulings and advance pricing arrangements. Such communication will
not discharge a Member State from its obligations to notify any state aid to
the Commission. 
(9)       Feedback by the receiving
Member State to the Member State sending the information is a necessary element
of the operation of an effective system of automatic information exchange. It
is therefore appropriate to provide for measures enabling the provision of
feedback in cases where the information has been used and where no feedback can
be provided under other provisions of Directive 2011/16/EU.
(10)     A Member State should be
able to rely on Article 5 of Directive 2011/16/EU as regards the exchange of
information on request to obtain additional information, including the full
text of advance cross-border rulings or advance pricing arrangements, from the
Member State having issued such rulings or arrangements.
(11)     Member States should take
all measures necessary to remove any obstacle that might hinder the effective
and widest possible mandatory automatic exchange of information on advance
cross-border rulings and advance pricing arrangements. 
(12)     In order to enhance the
efficient use of resources, facilitate the exchange of information and avoid
the need for Member States each to make similar developments to their systems
to store information, specific provision should be made for the establishment
of a central directory accessible to all Member States and the Commission where
Member States would upload and store information instead of exchanging it by
email. The practical arrangements necessary for the establishment of such a
directory should be adopted by the Commission in accordance with the procedure
referred to in Article 26(2) of Directive 2011/16/EU.
(13)     Having regard to the nature
and extent of the changes introduced by Directive 2014/107/EU and this
Directive, the timeframe for the submission of information, statistics and
reports provided for under Directive 2011/16/EU should be extended. Such an
extension should ensure the information to be provided can take into account
the experience resulting from those changes. The extension should apply both to
the statistics and other information to be submitted by Member States before 1
July 2016 and to the report and, if appropriate, the proposal to be submitted
by the Commission before 1 July 2017.
(14)     In the spirit of the
incremental approach advocated in Directive 2011/16/EU, it is appropriate to
adapt the time limits for the existing mandatory automatic exchange of
information provided for in Article 8(1) of Directive 2011/16/EU in order to
ensure that the available information on the categories is communicated within
nine months after the end of the tax year to which it relates. 
(15)     The existing provisions
regarding confidentiality should be amended to reflect the extension of
mandatory automatic exchange of information to advance cross-border rulings and
advance pricing arrangements.  
(16)     This Directive respects the
fundamental rights and observes the principles recognised in particular by the
Charter of Fundamental Rights of the European Union. In particular, this
Directive seeks to ensure full respect for the right to the protection of
personal data and the freedom to conduct a business. 
(17)     Since the objective of this
Directive, namely the efficient administrative cooperation between Member
States under conditions compatible with the proper functioning of the Internal
Market, cannot be sufficiently achieved by the Member States but can rather, by
reason of the uniformity and effectiveness required, be better achieved at
Union level, the Union may adopt measures, in accordance with the principle of
subsidiarity as set out in Article 5 of the Treaty on European Union. 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 that
objective. 
(18)     In accordance with the
Joint Political Declaration of Member States and the Commission of 28 September
2011 on explanatory documents[14],
Member States have undertaken to accompany, in justified cases, the
notification of their transposition measures with one or more documents
explaining the relationship between the components of a Directive and the
corresponding parts of national transposition instruments. With regard to this
Directive, the legislator considers the transmission of such documents to be
justified.
(19)     Directive 2011/16/EU should
therefore be amended accordingly,
HAS ADOPTED THIS DIRECTIVE:
Article 1
Directive 2011/16/EU is amended as follows:
(1)        Article 3 is amended as
follows:
            (a)
Point 9 is replaced by the following:
"9. 
'automatic exchange' means, 
(a) for the
purposes of Article 8(1) and Article 8a, the systematic communication of
predefined information to another Member State, without prior request, at
pre-established regular intervals. For the purposes of  Article 8(1), reference
to available information relates to information in the tax files of the Member
State communicating the information, which is retrievable in accordance with
the procedures for gathering and processing information in that Member State.
(b) for the
purposes of Article 8(3a), the systematic communication of predefined
information on residents in other Member States to the relevant Member State of
residence, without prior request, at pre-established regular intervals. In the
context of Article 8(3a), Article 8(7a), Article 21(2) and Article 25(2) and
(3) any capitalised term shall have the meaning that it has under the
corresponding definitions set out in Annex I;
(c) for the
purposes of all provisions other than Article 8(1), 8(3a) and 8a, the
systematic communication of predefined information provided in accordance with
points (a) and (b) of this point."
(b) The
following points 14, 15 and 16 are added:
"14.
'advance cross-border ruling' means any agreement, communication, or any other
instrument or action with similar effects, including one issued in the context
of a tax audit, which:
(a) is given by,
or on behalf of, the government or the tax authority of a Member State, or any
territorial or administrative subdivisions thereof, to any person; 
(b) concerns the
interpretation or application of a legal or administrative provision concerning
the administration or enforcement of national laws relating to taxes of the
Member State, or its territorial or administrative subdivisions;
(c) relates to a
cross-border transaction or to the question of whether or not activities
carried on by a legal person in the other Member State create a permanent
establishment, and; 
(d) is made in
advance of the transactions or of the activities in the other Member State
potentially creating a permanent establishment or of the filing of a tax return
covering the period in which the transaction or series of transactions or activities
took place. 
The cross-border
transaction may involve, but is not restricted to, the making of investments,
the provision of goods, services, finance or the use of tangible or intangible
assets and does not have to directly involve the person receiving the advance
cross-border ruling;
15. 'advance
pricing arrangement' means any agreement, communication or any other instrument
or action with similar effects, including one issued in the context of a tax
audit, given by, or on behalf of, the government or the tax authority of one or
more Member States, including any territorial or administrative subdivision
thereof, to any person that determines in advance of cross-border transactions
between associated enterprises, an appropriate set of criteria for the
determination of the transfer pricing for those transactions or determines the
attribution of profits to a permanent establishment.
Enterprises are
associated enterprises where one enterprise participates directly or indirectly
in the management, control or capital of another enterprise or the same persons
participate directly or indirectly in the management, control or capital of the
enterprises. 
Transfer prices
are the prices at which an enterprise transfers physical goods and intangible
property or provides services to associated enterprises, and “transfer pricing”
is to be construed accordingly;
16. For the
purpose of point 14 'cross-border transaction' means a transaction or series of
transactions where: 
(a) not all the
parties to the transaction or series of transactions are resident for tax
purposes in the Member State giving the advance cross-border ruling, or;
(b) any of the
parties to the transaction or series of transactions is simultaneously resident
for tax purposes in more than one jurisdiction, or; 
(c) one of the
parties to the transaction or series of transactions carries on business in
another Member State through a permanent establishment and the transaction or
series of transactions forms part or the whole of the business of the permanent
establishment. A cross-border transaction or series of transactions shall also
include arrangements made by a single legal person in respect of business
activities in another Member State which that person carries on through a
permanent establishment.  
For the purpose
of point 15 'cross-border transaction' means a transaction or series of
transactions involving associated enterprises which are not all resident for
tax purposes in the territory of a single Member State." 
(2)        Article 8 is amended as follows: 
            (a) Paragraphs 4 and 5 are
deleted.
(b) Paragraph 6
is replaced by the following:
"6. The
communication of information shall take place as follows: 
(a) for the
categories laid down in paragraph 1: at least once a year, within nine months
following the end of the tax year of the Member State to which the information
relates;  
(b) for the
information laid down in paragraph 3a: annually, within nine months following
the end of the calendar year or other appropriate reporting period to which the
information relates."
 (3)      The following Articles
8a and 8b are inserted:
"Article 8a
Scope and
conditions of mandatory automatic exchange of information on advance
cross-border rulings and advance pricing arrangements
1. The competent
authority of a Member State issuing or amending an advance cross-border ruling
or an advance pricing arrangement after the date of entry into force of this
Directive shall, by automatic exchange, communicate information thereon to the
competent authorities of all other Member States as well as to the European
Commission. 
2. The competent
authority of a Member State shall also communicate information to the competent
authorities of all other Member States as well as to the European Commission on
advance cross-border rulings and advance pricing arrangements issued within a
period beginning ten years before the entry into force but still valid on the
date of entry into force of this Directive; 
3. Paragraph 1
shall not apply in a case where an advance cross-border ruling exclusively concerns
and involves the tax affairs of one or more natural persons.
4. The exchange
of information shall take place as follows: 
(a) in respect
of the information exchanged pursuant to paragraph 1: within
one month following the end of the quarter during which the advance
cross-border rulings or advance pricing arrangements have been issued or
amended.
(b) in respect
of the information exchanged pursuant to paragraph 2: before 31 December 2016;
5. The
information to be communicated by a Member State pursuant to this Article shall
as a minimum include the following information: 
(a) the
identification of the taxpayer and where appropriate the group of companies to
which it belongs;
(b) the content
of the advance cross-border ruling or advance pricing arrangement, including a
description of the relevant business activities or transactions or series of
transactions; 
(c) the
description of the set of criteria used for the determination of the transfer
pricing or transfer price itself in the case of an advance pricing arrangement;

(d) the
identification of the other Member States likely to be directly or indirectly
concerned by the advance cross-border ruling or advance pricing arrangement; 
(e) the
identification of any person, other than a natural person, in the other Member
States likely to be directly or indirectly affected by the advance cross-border
ruling or advance pricing arrangement (indicating to which Member State the
affected persons are linked).
6. To facilitate
the exchange the Commission shall adopt any measures and practical arrangements
necessary for the implementation of this Article, including measures to
standardise the communication of the information set out in paragraph 5 of this
Article, as part of the procedure for establishing the standard form provided
in Article 20(5). 
7. The competent
authority to which information is communicated pursuant to paragraph 1 shall
confirm, if possible by electronic means, the receipt of the information to the
competent authority which provided the information immediately and in any event
no later than seven working days. 
8. Member States
may, in accordance with Article 5, request additional information, including
the full text of an advance cross-border ruling or an advance pricing
arrangement, from the Member State which issued it.
9. Article 17(4)
shall not apply to information exchanged in accordance with paragraphs 1 and 2
of this Article.
Article 8b
Statistics on
automatic exchanges
1. Before 1
October 2017, Member States shall provide the Commission on an annual basis
with statistics on the volume of automatic exchanges under Articles 8 and 8a
and, to the extent possible, with information on the administrative and other
relevant costs and benefits relating to exchanges that have taken place and any
potential changes, for both tax administrations and third parties.
2. Before 1
October 2018, the Commission shall submit a report that provides an overview
and an assessment of the statistics and information received under paragraph 1
of this Article, on issues such as the administrative and other relevant costs
and benefits of the automatic exchange of information, as well as practical
aspects linked thereto. If appropriate, the Commission shall present a proposal
to the Council regarding the categories of income and capital and/or the
conditions laid down in Article 8(1), including the condition that information
concerning residents in other Member States has to be available."
(4)        In Article 14 the
following paragraph 3 is added:
"3. Where a
Member State makes use of any information communicated by another Member State
in accordance with Article 8a, it shall send feedback thereon to the competent
authority which provided the information as soon as possible, and no later than
three months after the outcome of the use of the requested information is
known, except if feedback has already been provided pursuant to paragraph 1 of
this Article. The Commission shall determine the practical arrangements in
accordance with the procedure referred to in Article 26(2)."
(5)        In Article 20, the following
paragraph 5 is added:
"5. The
automatic exchange of information on advance cross-border rulings and advance
pricing arrangements pursuant to Article 8a shall be carried out using a
standard form once that form has been adopted by the Commission in accordance
with the procedure referred to in Article 26(2)."
(6)        In Article 21, the
following paragraph 5 is added:
"5. The
Commission shall develop a secure central directory where information to be
communicated in the framework of Article 8a of this Directive may be recorded
in order to satisfy the automatic exchange provided for in paragraphs 1 and 2
of Article 8a. The Commission shall have access to the information recorded in
this directory. The necessary practical arrangements shall be adopted by the
Commission in accordance with the procedure referred to in Article 26(2)."
(7)        Article 23 is amended as
follows:
(a) Paragraph 3
is replaced by:
"3. Member
States shall communicate to the Commission a yearly assessment of the effectiveness
of the automatic exchange of information referred to in Article 8 and Article
8a 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 26(2)."
(b) Paragraphs 5 and 6 are deleted.
(8)        The
following Article 23a is inserted:
"Article
23a
Confidentiality
of information
1. Information
communicated to the Commission pursuant to this Directive shall be kept confidential
by the Commission in accordance with the provisions applicable to Union
authorities.
2. Information
communicated to the Commission by a Member State under Article 23, as well as
any report or document produced by the Commission using such information, may
be transmitted to other Member States. Such transmitted information shall be
covered by the obligation of official secrecy and enjoy the protection extended
to similar information under the national law of the Member State which
received it.
Reports and
documents produced by the Commission referred to in the first subparagraph may
only be used by the Member States for analytical purposes but shall not be
published or made available to any other person or body without express
agreement of the Commission."
(9)        In
Article 25, the following paragraph 1a is inserted:
"1a.
Regulation (EC) No 45/2001 applies to any processing of personal data under
this Directive by the Union institutions and bodies. However, for the purpose
of the correct application of this Directive, the scope of the obligations and
rights provided for in Article 11, Article 12(1), Articles 13 to 17 of
Regulation (EC) No 45/2001 is restricted to the extent required in order to
safeguard the interests referred to in Article 20(1)(b) of that
Regulation."
Article 2
1.         Member States shall adopt and publish, by 31 December
2015 at the latest, the laws, regulations and administrative provisions
necessary to comply with this Directive. They shall forthwith communicate to
the Commission the text of those provisions.
They shall apply
those provisions from 1 January 2016.
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.
Article 3
This Directive shall enter into force on
the twentieth day following that of its publication in the Official Journal
of the European Union.
Article 4
This Directive is addressed to the Member
States.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
LEGISLATIVE FINANCIAL STATEMENT
1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE 
              1.1.    Title of the proposal/initiative 
              1.2.    Policy
area(s) concerned in the ABM/ABB structure
              1.3.    Nature
of the proposal/initiative 
              1.4.    Objective(s)

              1.5.    Grounds
for the proposal/initiative 
              1.6.    Duration
and financial impact 
              1.7.    Management
mode(s) planned 
2.           MANAGEMENT MEASURES 
              2.1.    Monitoring
and reporting rules 
              2.2.    Management
and control system 
              2.3.    Measures
to prevent fraud and irregularities 
3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE 
              3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected 
              3.2.    Estimated
impact on expenditure 
              3.2.1. Summary of
estimated impact on expenditure 
              3.2.2. Estimated impact
on operational appropriations 
              3.2.3. Estimated impact
on appropriations of an administrative nature
              3.2.4. Compatibility
with the current multiannual financial framework
              3.2.5. Third-party
contributions 
              3.3.    Estimated impact on revenue
LEGISLATIVE FINANCIAL STATEMENT
1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE 
1.1.        Title of the
proposal/initiative 
Proposal for a Council Directive amending Directive 2011/16/EU             
as regards the exchange of information in the field of taxation
1.2.        Policy area(s) concerned
in the ABM/ABB structure[15]

14
14.03
1.3.        Nature of the
proposal/initiative 
ý The
proposal/initiative relates to a new action 
¨ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[16] 
¨ The
proposal/initiative relates to the extension of an existing action 
¨ The
proposal/initiative relates to an action redirected towards a new action

1.4.        Objective(s)
1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative 
The Commission work programme for 2015  lists among its priorities
that of A Fairer Approach to Taxation including by ensuring "automatic
exchange of information on tax rulings" which is precisely the purpose of
the present proposal.
1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned 
Specific objective 
Specific objective of the FISCALIS programme is to support the fight
against tax fraud, tax evasion and aggressive tax planning and the
implementation of Union law in the field of taxation by ensuring exchange of
information, by supporting administrative cooperation and, where necessary and
appropriate, by enhancing the administrative capacity of participating
countries with a view to assisting in reducing the administrative burden on tax
authorities and the compliance costs for taxpayers.
ABM/ABB activity(ies) concerned
ABB 3
1.4.3.     Expected result(s) and
impact
Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.
First, automatic exchange of information between Member States on
tax rulings will mean that all Member States will be able to properly assess
whether another Member State's tax rulings impact on them (even if
unintentionally) and will be able to react accordingly. 
Second, the fact that there is more transparency on tax rulings
should create a greater incentive for ensuring that tax competition becomes
fairer. Automatic exchange of information on tax rulings may also deter
companies from aggressive tax planning on the basis of tax rulings, since other
Member States will now have the information needed to detect and react to
artificial arrangements and profit shifting. 
1.4.4.     Indicators of results and
impact 
Specify the
indicators for monitoring implementation of the proposal/initiative.
The proposal will be governed by the requirements in the Directive
that it is amending (i.e. Directive 2011/16) for i) the provision by Member
States on an annual basis of statistics of information exchange, ii) the
submission of a report by the Commission on the basis of those statistics, and
iii) the provision by Member States on an annual basis of an evaluation of the
effectiveness of the automatic exchange of information.
1.5.        Grounds for the
proposal/initiative 
1.5.1.     Requirement(s) to be met in
the short or long term 
While, under the Directive on Administrative Cooperation (2011/16),
there is a requirement on a Member State which issues a tax ruling to disclose
information to any other Member States concerned, it is left to the Member
State issuing the ruling to decide to which other Member States the information
might be relevant. However, the Member State issuing the ruling may not always
be in a position to know which other Member States might be affected.
Furthermore, there are currently several exemptions from the disclosure
requirement. This proposal would require a Member State issuing rulings to
provide information automatically to all other Member States, so that the
decision on relevance would be made by a receiving rather than issuing Member
State, and would eliminate the current exemptions from the disclosure
requirement.
1.5.2.     Added value of EU
involvement
Member States acting individually might not be able to obtain full
information on rulings issued by other Member States even where those rulings
concern their tax base. A binding EU approach is the only way to ensure
complete transparency and cooperation in this matter.
1.5.3.     Lessons learned from
similar experiences in the past
The present non-automatic approach to exchange of information on
rulings has not, so far, led to transparency in this field. Currently, some
taxpayers are taking advance of the lack of transparency to set up structures
that shift profits to low-tax countries, which may not be the countries where
economic activities generating the profits are performed and where value is
created. The automatic exchange of information between tax administrations
which applies in other tax fields, such as for savings income, has led to good
results. Automatic exchange is now accepted at global level as the best tool
available to tax administrations to tackle tax avoidance and evasion.
1.5.4.     Compatibility and possible
synergy with other appropriate instruments
As the proposal is designed to amend the Directive on Administrative
Cooperation (2011/16), the procedures, arrangements and IT tools already
established or under development under that Directive will be available for use
for the purposes of this proposal. 
1.6.        Duration and financial
impact 
¨ Proposal/initiative of limited
duration 
–     
¨  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY 
–     
¨  Financial impact from YYYY to YYYY 
ý Proposal/initiative of unlimited duration
–     
Implementation with a start-up period from YYYY
to YYYY,
–     
The proposal will take effect from 1 January
2016
–     
followed by full-scale operation.
1.7.        Management mode(s) planned[17] 
ý Direct management by the Commission
–     
ý by its departments, including by its staff in the Union
delegations;   
     the Fiscalis 2020
programme is managed in direct mode
–     
¨  by the executive agencies 
¨ Shared management with the Member States 
¨ Indirect management by entrusting budget implementation tasks to:
–     
¨ third countries or the bodies they have designated;
–     
¨ international organisations and their agencies (to be specified);
–     
¨the EIB and the European Investment Fund;
–     
¨ bodies referred to in Articles 208 and 209 of the Financial
Regulation;
–     
¨ public law bodies;
–     
¨ bodies governed by private law with a public service mission to the
extent that they provide adequate financial guarantees;
–     
¨ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that
provide adequate financial guarantees;
–     
¨ persons entrusted with the implementation of specific actions in
the CFSP pursuant to Title V of the TEU, and identified in the relevant basic
act.
–       If more than one management mode is
indicated, please provide details in the ‘Comments’ section.
Comments 
Nothing as
regards management would change under this proposal. Under Article 21 of
Directive 2011/16, the Commission, in comitology in conjunction with Member
States, develops the standardised forms and formats for information exchange.
As regards the CCN network necessary to permit the exchange of information
between Member States, the Commission is responsible for whatever development
of the CCN network is necessary to permit the exchange of that information
while Member States are responsible for whatever development of their systems
is necessary to enable information in question to be exchanged using the CCN
network.
2.           MANAGEMENT MEASURES 
2.1.        Monitoring and reporting
rules 
Specify frequency
and conditions.
Under the FISCALIS programme, the monitoring and reporting is dealt
with as follows…….
Preparatory activities required for this initiative and other joint
actions and common training activities are monitored regularly through input
collected from the participants and action managers. The input is collected via
standardised forms and feeds in indicators established in the Fiscalis 2020
programme performance measurement framework (PMF). Other expenditure related to
the exchange of information is monitored according to the mechanism described
under section 1.4.4 and also consolidated under PMF.
2.2.        Management and control
system 
2.2.1.     Risk(s) identified 
The potential risks for the implementation of the initiative with
the Fiscalis 2020 support relate to:
Implementation of the grant agreement signed with the consortium of
the Member States and Candidate Countries
Implementation of the procurement contracts concluded under the programme.

2.2.2.     Information concerning the
internal control system set up
The set up of internal control system is identical to the Fiscalis
2020 programme, which will be covering all operational expenditures of the
initiative.
The main elements of the control strategy applied are:
For procurement contracts: 
The control procedures for procurement defined in the Financial
Regulation are applied. Any procurement contract is established following the
established procedure of verification by the services of the Commission for
payment, taking into account contractual obligations and sound financial and
general management. Anti-fraud measures (controls, reports, etc.) are foreseen
in all contracts concluded between the Commission and the beneficiaries. Detailed
terms of reference are drafted and form the basis of each specific contract.
The acceptance process follows strictly the TAXUD TEMPO methodology:
deliverables are reviewed, amended if necessary and finally explicitly accepted
(or rejected). No invoice can be paid without an "acceptance letter".

Technical verification for procurement
DG TAXUD performs controls of deliverables and supervises operations
and services carried out by contractors. It also conducts quality and security
audits of their contractors on a regular basis. Quality audits verify the
compliance of the contractors' actual processes against the rules and
procedures defined in their quality plans. Security audits focus on the
specific processes, procedures and set-up. 
In addition to the above controls, DG TAXUD performs the traditional
financial controls: 
Ex-ante verification of commitments: 
All commitments in DG TAXUD are verified by the head of the HR and
Finances Unit. Consequently, 100% of the committed amounts are covered by the
ex-ante verification. This procedure gives a high level of assurance as to the
legality and regularity of transactions.
Ex-ante verification of payments: 
100% of pyaments are verified ex-ante. Moreover, at least one
payment (from all categories of expenditures) per week is randomly selected for
additional ex-ante verification performed by the head of the HR and Finances
Unit. There is no target concerning the coverage, as the purpose of this
verification is to check payments "randomly" in order to verify that
all payments were prepared in line with the requirements. The remaining
payments are processed according to the rules in force on a daily basis.
Declarations of the AOSD: 
All the Authorising Officers by Sub-Delegations sign declarations
supporting the Annual Activity Report for the year concerned. These
declarations cover the operations under the programme. The AOSD declare that
the operations connected with the implementation of the budget have been
executed in accordance with the principles of the sound financial management,
that the management and control systems in place provided satisfactory
assurance concerning the legality and regularity of the transactions and that
the risks associated to these operations have been properly identified,
reported and that mitigating actions have been implemented. 
2.2.3.     Estimate of the costs and
benefits of the controls and assessment of the expected level of risk of error 
The controls established enable DG TAXUD to have sufficient
assurance of the quality and regularity of the expenditure and reduce the risk
of non-compliance. The above control strategy measures reduce the potential
risks bellow the target of 2% and it reaches all beneficiaries Any additional
measures for further risk reduction would result in disproportionate high costs
and are therefore not envisaged. 
The overall costs  entailed to implement the above control strategy
– for all expenditures under Fiscalis 2020 programme – are limited to 1.6 % of
the total payments made. It is expected to remain at the same ratio for this
initiative.
The programme control strategy is deemed efficient to limit the risk
of non-compliance to virtually zero and to be proportionate with the risks
entailed.
2.3.        Measures to prevent fraud
and irregularities 
Specify existing or
envisaged prevention and protection measures.
The European Anti-fraud Office (OLAF) may carry out investigations,
including on-the-spot checks and inspections, in accordance with the provisions
and procedures laid down in Regulation (EC) No 1073/1999 of the European
Parliament and of the Council ( 1 ) and Council Regulation (Euratom, EC) No
2185/96 ( 2 ) with a view to establishing whether there has been fraud,
corruption or any other illegal activity affecting the financial interests of
the Union in connection with a grant agreement or grant decision or a contract
funded under this Regulation.
3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE 
3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected 
·      Existing budget lines – fully covered by the Fiscalis 2020 programme
In order of
multiannual financial framework headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number 1A Competitiveness for growth and jobs || Diff./Non-diff.[18] || from EFTA countries[19]   || from candidate countries[20]   || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation 
   || 14.0301 (Improving the proper functioning of the taxation systems) || Diff. || NO || NO || NO || NO 
·      New budget lines requested 
In order of
multiannual financial framework headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number [Heading………………………………………] || Diff./Non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation 
   || [XX.YY.YY.YY]   ||   || YES/NO || YES/NO || YES/NO || YES/NO 
3.2.        Estimated impact on
expenditure 
[This section should
be filled in using the spreadsheet on budget data of an
administrative nature (second
document in annex to this financial statement) and uploaded to CISNET for
interservice consultation purposes.]
3.2.1.     Summary of estimated impact
on expenditure 
The applications mentioned below are
included in the financial envelope of the FISCALIS 2020 programme. No
additional appropriations will be necessary
EUR million (to three decimal places)
 Heading of multiannual financial framework || Number || 1A Competitiveness for growth and jobs 
 DG: TAXUD ||   ||   || Year 2016[21] || Year 2017 || Year 2018 || Year 2019 || 2020 || TOTAL 
 Ÿ Operational appropriations ||   ||   ||   ||   ||   ||   ||   ||   
 Number of budget line 14.0301 || Commitments || (1) || 0.300 || 1.000 || 0.400 || 0.200 || 0.200 ||   ||   || 2100 
 Payments || (2) || 0.000 || 0.300 || 1.000 || 0.400 || 0.200 || 0.200 ||   || 2100 
 Number of budget line || Commitments || (1a) || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. ||   
 Payments || (2a) || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. ||   
 Appropriations of an administrative nature financed from the envelope of specific programmes[22]   || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. ||   
 Number of budget line ||   || (3) || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. ||   
 TOTAL appropriations for DG TAXUD || Commitments || =1+1a +3 || 0.300 || 1.000 || 0.400 || 0.200 || 0.200 ||   ||   || 2100 
 Payments || =2+2a +3 || 0.000 || 0.300 || 1.000 || 0.400 || 0.200 || 0.200 ||   || 2100 
 Ÿ TOTAL operational appropriations || Commitments || (4) || 0.300 || 1.000 || 0.400 || 0.200 || 0.200 ||   ||   || 2100 
 Payments || (5) || 0.000 || 0.300 || 1.000 || 0.400 || 0.200 || 0.200 ||   || 2100 
 Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. ||   
 TOTAL appropriations under HEADING 1A of the multiannual financial framework || Commitments || =4+ 6 || 0.300 || 1.000 || 0.400 || 0.200 || 0.200 ||   ||   || 2100 
 Payments || =5+ 6 || 0.000 || 0.300 || 1.000 || 0.400 || 0.200 || 0.200 ||   || 2100 
If more than one heading is affected by the proposal /
initiative:
 Ÿ TOTAL operational appropriations || Commitments || (4) || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. ||   
 Payments || (5) || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. ||   
 Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. ||   
 TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. ||   
 Payments || =5+ 6 || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. ||   
 Heading of multiannual financial framework || 5 || ‘Administrative expenditure’ 
EUR million (to three decimal places)
   ||   ||   || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 
 DG: TAXUD || 
 Ÿ Human resources || 0.528 || 0.528 || 0.528 || 0.528 || 0.528 ||   ||   ||   
 Ÿ Other administrative expenditure || 0.030 || 0.030 || 0.030 || 0.030 || 0.030 ||   ||   ||   
 TOTAL DG TAXUD || Appropriations || 0.558 || 0.558 || 0.558 || 0.558 || 0.558 ||   ||   ||   
 TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0.558 || 0.558 || 0.558 || 0.558 || 0.558 ||   ||   ||   
EUR million (to three decimal places)
   ||   ||   || Year 2016[23] || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL 
 TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0.858 || 1.558 || 0.958 || 0.758 || 0.758 ||   ||   ||   
 Payments || 0.558 || 0.858 || 1.558 || 0.958 || 0.758 ||   ||   ||   
3.2.2.     Estimated impact on
operational appropriations 
–     
¨  The proposal/initiative does not require the use of operational
appropriations 
–     
ý  The proposal/initiative requires the use of operational
appropriations, as explained below:
Commitment appropriations in EUR million (to three
decimal places)
 Indicate objectives and outputs   ò ||   ||   || Year 2016 || Year 2017 || Year 2018 || Year 2019 || 2020 || TOTAL 
 OUTPUTS 
 Type[24]   || Average cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || Total No || Total cost 
 SPECIFIC OBJECTIVE No 1[25]… ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal for specific objective No 1 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 SPECIFIC OBJECTIVE No 2 ... ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal for specific objective No 2 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL COST ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
NOTE

The anticipated positive output of this proposal is
that  i) Member States will receive information on tax rulings in other
countries which will put them in an informed position to apply counter-measures
as they see fit; ii) the general public may view the measure as an active step
to ensure that all taxpayers pay their fair share of taxes; iii) peer pressure
might mean that Member States will modify their rulings practices; iv)
companies might limit their aggressive tax planning structures. While Member
States issuing tax rulings will have an increased administrative burden and
compliance costs directly related to providing information on rulings, these
costs are expected to be limited given the limited nature of the information to
be provided. Moreover, the information should have been provided already (i.e.
the proposal largely simply clarifies and confirms existing information
exchange obligations).
3.2.3.     Estimated impact on
appropriations of an administrative nature
3.2.3.1.  Summary 
–     
¨  The proposal/initiative does not require the use of appropriations
of an administrative nature 
–     
ý  The proposal/initiative requires the use of appropriations of an
administrative nature, as explained below:
EUR million (to
three decimal places)
   || Year 2016[26] || Year 2017 || Year 2018 || Year 2019 || 2020 || TOTAL 
 HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 Human resources || 0.528 || 0.528 || 0.528 || 0.528 || 0.528 ||   ||   ||   
 Other administrative expenditure || 0.030 || 0.030 || 0.030 || 0.030 || 0.030 ||   ||   ||   
 Subtotal HEADING 5 of the multiannual financial framework || 0.558 || 0.558 || 0.558 || 0.558 || 0.558 ||   ||   ||   
 Outside HEADING 5[27] of the multiannual financial framework   ||   ||   ||   ||   ||   ||   ||   ||   
 Human resources ||   ||   ||   ||   ||   ||   ||   ||   
 Other expenditure of an administrative nature ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal outside HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL || 0.558 || 0.558 || 0.558 || 0.558 || 0.558 ||   ||   ||   
The appropriations
required for human resources and other expenditure of an administrative nature
will be met by appropriations from the DG that are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of budgetary
constraints.
3.2.3.2.  Estimated requirements of
human resources
–     
¨  The proposal/initiative does not require the use of human
resources. 
–     
ý  The proposal/initiative requires the use of human resources, as
explained below:
Estimate to be expressed in full time
equivalent units
 ||   || Year 2016 || Year 2017 || Year 2018 || Year 2019 || 2020 
 || Ÿ Establishment plan posts (officials and temporary staff) ||   ||   
 || XX 01 01 01 (Headquarters and Commission’s Representation Offices) || 4 || 4 || 4 || 4 || 4 ||   ||   
 || XX 01 01 02 (Delegations) || p.m. || p.m. || p.m. || p.m. || p.m. || . || . 
 || XX 01 05 01 (Indirect research) || p.m. || p.m. || p.m. || p.m. || p.m. || . || . 
 || 10 01 05 01 (Direct research) || p.m. || p.m. || p.m. || p.m. || p.m. || . ||   
 Ÿ External staff (in Full Time Equivalent unit: FTE)[28]   || 
 || XX 01 02 01 (AC, END, INT from the ‘global envelope’) || p.m. || p.m. || p.m. || p.m. || p.m. ||   ||   
 || XX 01 02 02 (AC, AL, END, INT and JED in the delegations) || p.m. || p.m. || p.m. || p.m. || p.m. || . ||   
 || XX 01 04 yy [29]   || - at Headquarters   || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. || p.m. 
 || - in Delegations || p.m. || p.m. || p.m. || p.m. || p.m. || . ||   
 || XX 01 05 02 (AC, END, INT - Indirect research) || p.m. || p.m. || p.m. || p.m. || p.m. ||   || m. 
 || 10 01 05 02 (AC, END, INT - Direct research) || p.m. || p.m. || p.m. || p.m. || p.m. ||   ||   
 || Other budget lines (specify) || p.m. || p.m. || p.m. || p.m. || p.m. ||   ||   
 || TOTAL || 4 || 4 || 4 || 4 || 4 ||   ||   
XX is the policy area or budget title
concerned.
The human resources
required will be met by staff from the DG who are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of budgetary
constraints.
Description of
tasks to be carried out:
 Officials and temporary staff || Preparation of meetings and correspondence with MS; (depending on discussions with Member States) work on forms, IT formats and central directory; commissioning of outside contractors to do work on the IT system 
 External staff || N/A 
3.2.4.     Compatibility with the
current multiannual financial framework 
–     
ý  The proposal/initiative is compatible the current multiannual
financial framework.
–     
¨  The proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.
Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.
–     
¨  The proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework.
Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.
3.2.5.     Third-party contributions 
–     
The proposal/initiative does not provide for
co-financing by third parties. 
–     
The proposal/initiative provides for the
co-financing estimated below:
Appropriations in EUR million (to three decimal
places)
   || Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || Total 
 Specify the co-financing body ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations co-financed ||   ||   ||   ||   ||   ||   ||   ||   
3.3.        Estimated impact on
revenue 
–     
ý  The proposal/initiative has no financial impact on revenue.
–     
¨  The proposal/initiative has the following financial impact:
–                   
¨         on own resources 
–                   
¨         on miscellaneous revenue 
EUR
million (to three decimal places)
 Budget revenue line: || Appropriations available for the current financial year || Impact of the proposal/initiative[30] 
 Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) 
 Article …………. ||   ||   ||   ||   ||   ||   ||   ||   
For miscellaneous
‘assigned’ revenue, specify the budget expenditure line(s) affected.
Specify the method for
calculating the impact on revenue.
[1]  Commission
Recommendation of 6.12.2012 on aggressive tax planning.
[2]  OJ
98/C 2/01.
[3]  Document
10903/12 FISC 77 
[4]  http://ec.europa.eu/priorities/work-programme/index_en.htm

[5] European Parliament Resolution of 21 May
2013 on fight against tax fraud, tax evasion and tax havens (Kleva Report) –
2013/2025 (INI).
[6] European Economic and Social Committee
Opinion of 17 April 2013 on the Communication from the Commission to the
European Parliament and the Council – An action plan to strengthen the fight
against tax fraud and tax evasion COM(2012) 722 final (Dandea Report) – CESE
101/2013.
[7]  Public Reports by the Code of Conduct Group (Business Taxation)
are accessible here.
[8]  As examined in the BEPS project of the OECD
[9]  OJ L 359 of 16 December 2014. 
[10]             OJ C , , p. .
[11]             OJ C , , p. .
[12]             OJ C , , p. .
[13]             Council Directive 2011/16/EU of 15 February 2011 on
administrative cooperation in the field of taxation and repealing Directive
77/799/EEC (OJ L 64 of 11.3.2011, p. 1).
[14]             OJ C 369, 17.12.2011, p. 14.
[15]             ABM: activity-based management; ABB: activity-based
budgeting.
[16]             As referred to in Article 54(2)(a) or (b) of the
Financial Regulation.
[17]             Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html
[18]             Diff. = Differentiated appropriations / Non-diff. =
Non-differentiated appropriations.
[19]             EFTA: European Free Trade Association. 
[20]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.
[21]             2016 is the year in which implementation of the
proposal/initiative starts.
[22]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former ‘BA’ lines), indirect research, direct research.
[23]             2016 is the year in which implementation of the
proposal/initiative starts.
[24]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).
[25]             As described in point 1.4.2. ‘Specific objective(s)…’ 
[26]             2016 is the year in which implementation of the
proposal/initiative starts.
[27]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or
actions (former ‘BA’ lines), indirect research, direct research.
[28]             AC= Contract Staff; AL = Local Staff; END= Seconded
National Expert; INT = agency staff; JED= Junior Experts in Delegations. 
[29]             Sub-ceiling for external staff covered by operational
appropriations (former ‘BA’ lines).
[30]             As regards traditional own resources (customs duties,
sugar levies), the amounts indicated must be net amounts, i.e. gross amounts
after deduction of 25 % for collection costs.