EU updates rules on recovering cross-border tax debts

Posted on 2017-11-08

The European Union has enacted legislative amendments to improve how member states recover cross-border tax debts.

The measure was introduced in an amendment to Regulation 1189/2011, and aims at facilitating dialogue between tax administrations and ensuring the more efficient use of precautionary measures in the recovery of cross-border tax debts.

The Regulation provides detailed rules on the communication of tax recovery assistance requests, the procedure for following up on those requests, the use of standard request forms and uniform instruments between the authorities in EU member states, and the transfer of recovered amounts.

Under the amended Regulation, a special standard form will be provided with regard to requests for precautionary measures.

Requests for recovery or for precautionary measures will have to include a declaration that the conditions laid down in EU Directive 2010/24/EU for initiating a mutual assistance procedure have been fulfilled. In the case of a request for precautionary measures, the declaration may be supplemented by a declaration specifying the reasons for and circumstances of the request.

In addition, to ensure that the applicant member state is fully informed about the follow-up of a request for notification, the EU has deemed it appropriate that the requested authority should inform the applicant about the manner of notification.

Source: Tax News