tax policy

Limiting the Reporting of Tax Arrangements

The European Commission has proposed a council directive introducing an obligation to report cross-border tax planning arrangements. Coordinated by the GDV, the leading German business associations have sent a common position statement to the European Council, the European Commission and the European Parliament with remarks on the unclear definitions of reportable tax planning arrangements. The reporting obligation is too far reaching and needs to be limited.

With regard to the manifold uncertainties of the proposed council directive, the GDV is sceptical towards the introduction of a reporting-obligation for cross-border tax arrangements. In their common statement the leading German business associations have put in the following claims in the common statement in particular:

The “hallmarks” should be stated more precisely in order to make the reporting obligation manageable

  • The legal concept of “tax arrangements” is unclear. The scope of law should be limited.
  • The hallmarks and the definition of cross-border arrangements are too vague to define reportable cross-border arrangements in an adequate manner and should be substantiated.

Tax authorities should give feedback

  • Taxpayers and intermediaries reporting cross-border tax arrangements need more certainty concerning their projects.
  • Therefore tax authorities should inform the reporting taxpayers and intermediaries without unnecessary delay, whether the reported arrangements are categorized as aggressive or not.

The reporting period and the transitional agreement should be adjusted to practical needs

  • It should be sufficient if taxpayers report their arrangements when filing their tax declaration.
  • The reporting obligation should not come into effect before the day the council directive has been transposed into national law, i. e. at the earliest on 1 January 2020.

The GDV’s General Comments can be found in the download section.


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Limiting the Reporting of Tax Arrangements