REPORT on the proposal for a Council directive amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation

12.11.2013 - (COM(2013)0348 – C7‑0200/2013 – 2013/0188(CNS)) - *

Committee on Economic and Monetary Affairs
Rapporteur: George Sabin Cutaş

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a Council directive amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation

(COM(2013)0348 – C7‑0200/2013 – 2013/0188(CNS))

(Special legislative procedure – consultation)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2013)0348),

–   having regard to Article 115 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7‑0200/2013),

–   having regard to Rule 55 of its Rules of Procedure,

–   having regard to the report of the Committee on Economic and Monetary Affairs and the opinion of the Committee on Budgetary Control (A7-0376/2013),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;

3.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4.  Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal;

5.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment  1 Proposal for a directive Recital 1
Text proposed by the Commission	Amendment
(1) In recent years, the challenge posed by tax fraud and tax evasion has increased considerably and has become a major focus of concern within the Union and at global level. Unreported and untaxed income is considerably reducing national tax revenues. An increase in the efficiency and effectiveness of tax collection is therefore urgently needed. The automatic exchange of information constitutes an important tool in this regard and the Commission in its Communication of 6 December 2012 containing an Action plan to strengthen the fight against tax fraud and tax evasion8 highlighted the need to promote vigorously the automatic exchange of information as the future European and international standard for transparency and exchange of information in tax matters. The European Council on 22 May 2013 requested the extension of automatic information exchange at Union and global levels with a view to combatting tax fraud, tax evasion and aggressive tax planning.	(1) In recent years, the challenge posed by tax fraud, tax evasion and aggressive tax planning has increased considerably and has become a major focus of concern within the Union and at global level, especially in times of crisis. Unreported and untaxed income is considerably reducing national tax revenues, creating conditions for unfair competition and leading to losses. An increase in the efficiency and effectiveness of tax collection is therefore urgently needed. There should be effective systems in place to improve the efficiency of tax collection and to determine which Member State’s tax law is applicable. The automatic exchange of information constitutes an important tool in this regard and the Commission in its Communication of 6 December 2012 containing an Action plan to strengthen the fight against tax fraud and tax evasion8 highlighted the need to promote vigorously the automatic exchange of information as the future European and international standard for transparency and exchange of information in tax matters. The European Parliament, in its resolution of 21 May 2013 on Fight against Tax Fraud, Tax Evasion and Tax Havens9, and the European Council on 22 May 2013, requested the extension of automatic information exchange at Union and global levels with a view to combatting tax fraud, tax evasion and aggressive tax planning.
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8 COM(2012)722 final.	8 COM(2012)722 final. 9 P7_TA-PROV(2013)0205.
Amendment  2 Proposal for a directive Recital 1 a (new)
Text proposed by the Commission	Amendment
	(1a) In the past, tax policy was seen as an exclusively national matter, in which the Union does not matter. Today, tax must be as a result of globalisation, also discussed at the Union level. It would be more efficient and effective for the Commission to coordinate the exchange of information on tax on behalf of Member States than have a series of bilateral agreements between Member States. Different standards for automatic exchange of information vary from country to country. This is unnecessarily complex and imposes unnecessarily high costs for both Member States and financial institutions within the Union.
Amendment  3 Proposal for a directive Recital 1 b (new)
Text proposed by the Commission	Amendment
	(1b) The proposed amendments to this Directive lack a number of necessary explanations and definitions, which considerably complicates the understanding of the regulatory framework and overview of the impacts of the proposal. Therefore, the development of the definitions should be coordinated with the OECD's work in this area.
Amendment  4 Proposal for a directive Recital 3
Text proposed by the Commission	Amendment
(3) As highlighted by the request of the European Council, it is appropriate to bring forward the extension of automatic information exchange already envisaged in Article 8(5) of Directive 2011/16/EU. A Union initiative ensures a coherent, consistent and comprehensive Union-wide approach to the automatic exchange of information in the internal market which would lead to cost savings both for tax administrations and economic operators.	(3) As highlighted by the request of the European Council, it is appropriate to bring forward the extension of automatic information exchange already envisaged in Article 8(5) of Directive 2011/16/EU. A Union initiative ensures a coherent, consistent and comprehensive Union-wide approach to the automatic exchange of information in the internal market and is important in order to improve the efficiency of the tax systems and to strengthen the internal market in which the co-existence of 28 national tax systems raises issues of double taxation and distortion of competition. Not only would Member States benefit from the exchange of information on an equal footing, but the Union would be able to take the lead to promote similar standards internationally.
Amendment  5 Proposal for a directive Recital 3 a (new)
Text proposed by the Commission	Amendment
	(3a) Member States should implement administrative cooperation and exchange of information that does not violate taxpayers' procedural rights or their right to privacy.
Amendment  6 Proposal for a directive Recital 3 b (new)
Text proposed by the Commission	Amendment
	(3b) In accordance with the OECD report of 19 June 2013 and the St Petersburg G20 Leaders’ Declaration of 6 September 2013, the automatic exchange of information should be based on a common global model which ensures adequate confidentiality and the proper use of information exchanged. Expanding the scope of the automatic exchange of tax information will be the Union’s contribution to the work of the OECD and should increase the probability of a coherent global system, based on the new OECD standard to be presented in February 2014.
Amendment  7 Proposal for a directive Recital 3 c (new)
Text proposed by the Commission	Amendment
	(3c) When data is submitted to tax authorities for the purpose of information exchange with other countries, it is important to clarify how those authorities may use that data.
Amendment  8 Proposal for a directive Recital 4
Text proposed by the Commission	Amendment
(4) The fact that Member States have concluded or have expressed an intention to conclude agreements with the United States of America relating to its legislation on Foreign Account Tax Compliance (commonly referred to as ‘FATCA’) means that they are providing or will provide for a wider cooperation within the meaning of Article 19 of Directive 2011/16/EU, and are or will be under an obligation to provide such wider cooperation to other Member States as well.	(4) The fact that Member States have concluded or have expressed an intention to conclude agreements with the United States of America relating to its legislation on Foreign Account Tax Compliance (commonly referred to as ‘FATCA’) means that they are providing or will provide for a wider cooperation within the meaning of Article 19 of Directive 2011/16/EU, and are or will be under an obligation to provide such wider cooperation to other Member States as well. It is important that the automatic exchange of information is extended to reflect as closely as possible the information that follows the model of the bilateral FATCA agreements.
Amendment  9 Proposal for a directive Recital 4 a (new)
Text proposed by the Commission	Amendment
	(4a) In order to reduce ambiguities and inconsistencies, and to achieve cost savings, it is essential that the implementation of this Directive is coordinated with the implementation of FATCA.
Amendment  10 Proposal for a directive Recital 5
Text proposed by the Commission	Amendment
(5) The conclusion of parallel and uncoordinated agreements by Member States under Article 19 of Directive 2011/16/EU would lead to distortions that would be detrimental to the smooth functioning of the internal Market. Expanded automatic information exchange on the basis of a Union-wide legislative instrument would remove the need for Member States to invoke that provision, with a view to concluding bilateral or multilateral agreements that may be considered appropriate on the same subject in the absence of relevant Union legislation.	(5) The conclusion of parallel and uncoordinated agreements by Member States under Article 19 of Directive 2011/16/EU would lead to distortions that would be detrimental to the smooth functioning of the internal Market and to the Union approach as a whole. Expanded automatic information exchange on the basis of a Union-wide legislative instrument would remove the need for Member States to invoke that provision, with a view to concluding bilateral or multilateral agreements that may be considered appropriate on the same subject in the absence of relevant Union legislation. Therefore, the Union would also be in a better negotiating position to push for higher standards of tax information exchange at a global level.
Amendment  11 Proposal for a directive Recital 5 a (new)
Text proposed by the Commission	Amendment
	(5a) Work is in progress under the auspices of the OECD to develop bilateral and multilateral model agreements on exchanging information. Negotiations are also being held between the USA and many other countries on the implementation of FATCA by means of bilateral agreements. Many of the proposed amendments to Directive 2011/16/EU on administrative cooperation in the field of taxation regulate the same information exchange with which FATCA and the work at the OECD are concerned. The Commission should clarify the relationship between those regulatory provisions in order to ensure that the national tax authorities and the financial institutions responsible for applying those amendments are able to implement them.
Amendment  12 Proposal for a directive Recital 6 a (new)
Text proposed by the Commission	Amendment
	(6a) The new categories of income and capital in respect of which this Directive introduces an obligation to exchange information should be established in accordance with their interpretation in the law of the Member State communicating the information.
Amendment  13 Proposal for a directive Recital 7 a (new)
Text proposed by the Commission	Amendment
	(7a) The purpose of the existing provision of information to national tax authorities on income from capital and services is, inter alia, to provide a basis for taxation and for exchanges of information with other countries. If the requirement to provide information is now altered and information is obtained purely for the purpose of exchanging it, it is important to make it clear how the national tax authorities are permitted to use that information.
Amendment  14 Proposal for a directive Recital 9
Text proposed by the Commission	Amendment
(9) The review of the condition of availability to be undertaken in 2017 should be extended to all the five categories referred to in Article 8(1) of Directive 2011/16/UE, so that the case for exchange of information by all Member States on all those categories be examined.	(9) The review of the condition of availability to be undertaken in 2017 should be extended to all the four categories referred to in Article 8(1) of Directive 2011/16/UE, so that the case for exchange of information by all Member States on all those categories be examined.
Amendment  15 Proposal for a directive Recital 9 a (new)
Text proposed by the Commission	Amendment
	(9a) Each Member State should lay down penalties for breaches of this Directive and should take appropriate measures to ensure compliance therewith.
Amendment  16 Proposal for a directive Recital 10
Text proposed by the Commission	Amendment
(10) 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.	(10) This Directive respects the fundamental rights and observes the principles which are recognised in particular in Article 16 of the Treaty on the Functioning of the European Union and in Article 8 of the Charter of Fundamental Rights of the European Union. In light of the sensitivity of the data to be collected, specific attention should be paid to the respect for the right of privacy and to legitimate claims of confidentiality, in particular during any inquiry process.
Amendment  17 Proposal for a directive Article 1 – point b Directive 2011/16/EU Article 8 – paragraph 3a – subparagraph 1 – introductory part
Text proposed by the Commission Amendment 3a. The competent authority of each Member State shall, by automatic exchange, communicate to the competent authority of any other Member State, information regarding taxable periods as from 1 January 2014 concerning the following items which are paid, secured or held by a financial institution for the direct or indirect benefit of a beneficial owner who is a natural person resident in that other Member State: 3a. The competent authority of each Member State shall, by automatic exchange, communicate to the competent authority of any other Member State, information, if available, regarding taxable periods as from 1 January 2014 concerning the following items, in accordance with its national law, which are paid, secured or held by a financial institution for the direct or indirect benefit of a beneficial owner who is a natural person resident in that other Member State:
Justification
The new Article 8(3a), which defines the new categories of information exchanged, is lacking an interpretation clause, contrary to paragraph 1, which may give rise to serious problems in the effective implementation of the obligations imposed by the Directive. Owing to the difficulties in interpretation and the ambiguity of the concepts involved, it is appropriate to include in Article 8(3a) a clause referring to national legislation for the new categories of income and capital subject to automatic exchange of information.
Amendment  18 Proposal for a Directive Article 1 – point b a (new) Directive 2011/16/EU Article 8 – paragraph 4
Present text Amendment   (ba) Paragraph 4 is replaced by the following: 4. Before 1 July 2016, Member States shall provide the Commission on an annual basis with statistics on the volume of automatic exchanges 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. "4. Before 1 July 2016, Member States shall provide the Commission on an annual basis with statistics on the volume of automatic exchanges 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. The Commission shall inform the European Parliament of the information received."
Amendment  19 Proposal for a directive Article 1 – point c Directive 2011/16/EU Article 8 – paragraph 5 – subparagraph 1
Text proposed by the Commission Amendment 5. Before 1 July 2017, the Commission shall submit a report that provides an overview and an assessment of the statistics and information received, 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 and the conditions laid down in paragraph 1, including the condition that information concerning residents in other Member States has to be available, or the items referred to in paragraph 3a, or both. 5. Before 1 July 2017, the Commission shall submit to the European Parliament and to the Council a report that provides an overview and an impact assessment of the statistics and information received, 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 European Parliament and the Council regarding the categories of income and capital, the conditions laid down in paragraph 1, or both, including the condition that information concerning residents in other Member States has to be available, or the items referred to in paragraph 3a, or both.
Amendment  20 Proposal for a directive Article 1 – point c Directive 2011/16/EU Article 8 – paragraph 5 – subparagraph 2 – point a
Text proposed by the Commission Amendment (a) the competent authority of each Member State shall, by automatic exchange, communicate to the competent authority of any other Member State, information regarding taxable periods as from 1 January 2017 concerning residents in that other Member State, on all categories of income and capital listed in paragraph 1, as they are to be understood under the national legislation of the Member State communicating the information; (a) the competent authority of each Member State shall, by automatic exchange, communicate to the competent authority of any other Member State, information regarding taxable periods as from 1 January 2017 concerning residents in that other Member State, on at least three specific categories of income and capital listed in paragraph 1, as they are to be understood under the national legislation of the Member State communicating the information;
Justification
Not all Member States have information available on all categories of income and capital as defined in Article 8(1). Therefore, and in view of the wide variety of tax systems in the Member States, the proposed removal of the condition of availability for the categories defined in Article 8(1) may generate excessive costs connected with making the appropriate adjustments to information exchange systems, which is contrary to the principle of proportionality.
Amendment  21 Proposal for a directive Article 1 – paragraph 1 a (new) Directive 2011/16/EU Article 18 – paragraph 2 a (new)
Text proposed by the Commission Amendment   1a. In Article 18, the following paragraph is inserted:   "2a. Member State shall lay down penalties for breaches of this Directive and shall take the measures necessary to ensure compliance therewith. Such penalties shall be effective, proportionate and persuasive."
Amendment  22 Proposal for a directive Article 1 – paragraph 1 b (new) Directive 2011/16/EU Article 19 a (new)
Text proposed by the Commission Amendment   1b. The following Article is inserted:   "Article 19a   Mandate for negotiations with third countries   From [the date of entry into force of this Directive], only the Commission shall negotiate agreements with third countries on automatic exchange of information (AEOI) on behalf of the Union. From that date Member States shall not engage in bilateral agreements."
Justification
Given the global context and commitments made at the G20 and work by the OECD aiming at harmonising the automatic exchange of information collection, the EU needs to speak with one voice only, and the Commission should be granted the right to negotiate with third countries on behalf of the EU. This would only enter into force at the date of this new Directive entering into force, so as to not make redundant current agreements on e.g. FATCA.
Amendment  23 Proposal for a directive Article 1 – paragraph 1 c (new) Directive 2011/16/EU Article 22 – paragraph 1 – point c a (new)
Text proposed by the Commission Amendment   1c. In Article 22(1), the following point is added:   "(ca) make available the human, technological and financial resources needed for the implementation of this Directive, given the amount and the complexity of information, subject to the automatic exchange starting on 1 January 2015."
Amendment  24 Proposal for a Directive Article 1 – paragraph 1 d (new) Directive 2011/16/EU Article 23 – paragraph 3
Present text Amendment   1d. In Article 23, paragraph 3 is replaced by the following: 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 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). "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 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). The Commission shall inform the European Parliament of the assessments by the Member States on an annual basis."
Amendment  25 Proposal for a Directive Article 1 – paragraph 1 e (new) Directive 2011/16/EU Article 25
Present text Amendment   1e. Article 25 is replaced by the following: All exchange of information pursuant to this Directive shall be subject to the provisions implementing Directive 95/46/EC. However, Member States shall, for the purpose of the correct application of this Directive, restrict the scope of the obligations and rights provided for in Article 10, Article 11(1), Articles 12 and 21 of Directive 95/46/EC to the extent required in order to safeguard the interests referred to in Article 13(1)(e) of that Directive. "1. All exchange of information pursuant to this Directive shall be subject to the provisions implementing Directive 95/46/EC. However, Member States shall, for the purpose of the correct application of this Directive, restrict the scope of the obligations and rights provided for in Article 10, Article 11(1), Articles 12 and 21 of Directive 95/46/EC to the extent specifically required in order to safeguard the interests referred to in Article 13(1)(e) of that Directive.   2. Member States shall take appropriate measures to protect the exchanged information from unauthorised access by third parties or by third countries.”

EXPLANATORY STATEMENT

With its proposal of 12 June 2013, the Commission proposed to extend the automatic exchange of information (AEOI) between EU tax administrations as part of the intensified fight against tax evasion. Under this proposal, dividends, capital gains, all other forms of financial income and account balances, will be added to the list of categories which are subject to AEOI within the EU. This would pave the way for the EU to have the most comprehensive system of AEOI in the world.

This proposal, together with the EU Savings Tax Directive and the already existing Administrative Cooperation Directive, which this proposal aims to amend, will mean that Member States share as much information amongst themselves as they have committed to doing with the USA under the Foreign Account Tax Compliance Act (FATCA).

Your rapporteur fully supports the Commission proposal, and considers that the proposal is both well in line with the Commission's Action Plan on tax fraud and tax evasion, as well as with the European Parliament's position as expressed in the own-initiative report on Fighting tax fraud, tax evasions and tax havens. In times of crisis, when European citizens are often faced with tax increases, it is highly necessary to tackle the issues of tax fraud and tax evasion causing losses estimated at EUR 1 trillion a year; an approximate cost of EUR 2000 a year for every European citizen.

It also responds to requests from several Member States for an "EU FATCA", following bilateral agreements between several Member States and the US under their FATCA legislation. It also ties in with and complements initiatives at OECD, G8/G20 and global level.

Your rapporteur considers that it is now crucial to maintain the momentum and ensure a swift adoption and implementation of the proposal, respecting the timeline proposed by the Commission.

The EU needs to be at the forefront of establishing a global standard for AEOI, and by establishing a European system of AEOI, the Commission can lead the way in its work with the OECD in shaping the global standard.

To better address the current challenges, the rapporteur suggests some further improvements to the Commission's text:

Data protection

The AEOI needs to be fully in line with current EU legislation on data protection and privacy and whereas your rapporteur notes articles 16 and 25 in the 2011/16/ EU Council directive, further clarification on this is necessary, especially given the sensitivity of the matter and recent international evolutions.

Bilateral agreements

Your rapporteur considers that in the future the Commission alone shall negotiate agreements with third countries on AEOI - as in the area of trade - instead of the current practice of Member States negotiating bilateral agreements. Whereas your rapporteur believes the negotiations with the US on FATCA would have been more advantageous for the EU and Member States if the Commission, with a mandate from Member States, had been the negotiator on behalf of the EU, he however does not wish to make changes to agreements already made, and therefore the amendment specifies that the Commission being mandated to negotiate in the future on behalf of the EU only enters into force with the entry into force of this new Directive.

Resources

Your rapporteur believes that Member States should ensure efficient implementation of the Directive by mobilising all human, technological and financial resources needed, taking into account the amount and the complexity of information subject to the automatic exchange starting from 2015.

Sanctions

Although your rapporteur is aware that this Directive mainly aims at the relation and AEOI between national tax authorities, he considers that Member States shall be bound to use sanctions in order to obtain the information necessary for a functioning AEOI, so as to avoid entities failing to comply with the agreed standards.

OPINION of the Committee on Budgetary Control (21.10.2013)

for the Committee on Economic and Monetary Affairs

on the proposal for a Council directive amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation
(COM(2013)0348 – C7‑0200/2013 – 2013/0188(CNS))

Rapporteur: Crescenzio Rivellini

SHORT JUSTIFICATION

The amendments aim at reinforcing parliamentary control and protect citizens' fundamental rights. Parliament does not interfere with national taxation policies as the Directive deals with transnational administrative cooperation.

As the Commission pointed out billions of euros are lost every year due to tax fraud and tax evasion, and Parliament is looking at better protecting the Communities financial interests as well as blocking socially detrimental profiteering which leads to growing inequality and citizens' mistrust.

Since the extension of the scope of the directive will allow critical and sensible information to be available, the respect of individuals' rights in particular privacy and confidentiality should also be guaranteed.

AMENDMENTS

The Committee on Budgetary Control calls on the Committee on Economic and Monetary Affairs, as the committee responsible, to incorporate the following amendments into its report:

Amendment  1 Proposal for a Directive Recital 1
Text proposed by the Commission	Amendment
(1) In recent years, the challenge posed by tax fraud and tax evasion has increased considerably and has become a major focus of concern within the Union and at global level. Unreported and untaxed income is considerably reducing national tax revenues. An increase in the efficiency and effectiveness of tax collection is therefore urgently needed. The automatic exchange of information constitutes an important tool in this regard and the Commission in its Communication of 6 December 2012 containing an Action plan to strengthen the fight against tax fraud and tax evasion1 highlighted the need to promote vigorously the automatic exchange of information as the future European and international standard for transparency and exchange of information in tax matters. The European Council on 22 May 2013 requested the extension of automatic information exchange at Union and global levels with a view to combatting tax fraud, tax evasion and aggressive tax planning.	(1) In recent years, the challenge posed by tax fraud and tax evasion has increased considerably and has become a major focus of concern within the Union and at global level. Unreported and untaxed income is considerably reducing national tax revenues and contributing to social inequity and unrest. An increase in the efficiency and effectiveness of tax collection is therefore urgently needed. The automatic exchange of information constitutes an important tool in this regard and the Commission in its Communication of 6 December 2012 containing an Action plan to strengthen the fight against tax fraud and tax evasion1 highlighted the need to promote vigorously the automatic exchange of information as the future European and international standard for transparency and exchange of information in tax matters. The European Council on 22 May 2013 requested the extension of automatic information exchange at Union and global levels with a view to combatting tax fraud, tax evasion and aggressive tax planning.
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1 COM(2012)722 final	1COM(2012)722 final
Amendment  2 Proposal for a Directive Recital 3
Text proposed by the Commission	Amendment
(3) As highlighted by the request of the European Council, it is appropriate to bring forward the extension of automatic information exchange already envisaged in Article 8(5) of Directive 2011/16/EU. A Union initiative ensures a coherent, consistent and comprehensive Union-wide approach to the automatic exchange of information in the internal market which would lead to cost savings both for tax administrations and economic operators.	(3) As highlighted by the request of the European Council, it is appropriate to bring forward the extension of automatic information exchange already envisaged in Article 8(5) of Directive 2011/16/EU. A Union initiative ensures a coherent, consistent and comprehensive Union-wide approach to the automatic exchange of information in the internal market which would lead to economies of scale through cost savings both for tax administrations and economic operators.
Amendment  3 Proposal for a Directive Recital 10
Text proposed by the Commission	Amendment
(10) 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.	(10) 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.
	In light of the sensitivity of the data to be collected, specific attention should be paid to the respect for privacy rights and to the legitimate expectation of confidentiality, particularly during inquiry process.
Amendment  4 Proposal for a Directive Recital 11
Text proposed by the Commission	Amendment
(11) 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 and can therefore, by reason of the uniformity and effectiveness required, be better achieved at the level of the Union, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on the 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.	(11) 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, can, by reason of the uniformity and effectiveness required, be better achieved at the level of the Union, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on the 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.
Amendment  5 Proposal for a Directive Article 1 – paragraph 1 – point b a (new) Directive 2011/16/EU Article 8 – paragraph 4
Present text Amendment   (ba) Paragraph 4 shall be replaced by the following: 4. Before 1 July 2016, Member States shall provide the Commission on an annual basis with statistics on the volume of automatic exchanges 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. "4. Before 1 July 2016, Member States shall provide the Commission on an annual basis with statistics on the volume of automatic exchanges 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. The Commission shall inform the European Parliament about the information received."
Amendment  6 Proposal for a Directive Article 1 – paragraph 1 – point c Directive 2011/16/EU Article 8 – paragraph 5 – subparagraph 1
Text proposed by the Commission Amendment 5. Before 1 July 2017, the Commission shall submit a report that provides an overview and an assessment of the statistics and information received, 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 and the conditions laid down in paragraph 1, including the condition that information concerning residents in other Member States has to be available, or the items referred to in paragraph 3a, or both. 5. Before 1 July 2017, the Commission shall submit a report to the European Parliament and the Council that provides an overview and an impact assessment of the information received, 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 European Parliament and the Council regarding the categories of income and capital and/or the conditions laid down in paragraph 1, including the condition that information concerning residents in other Member States has to be available, or the items referred to in paragraph 3a, or both.
Amendment  7 Proposal for a Directive Article 1 – paragraph 1 – point 1 a (new) Directive 2011/16/EU Article 23 – paragraph 3
Present text Amendment   (1a) Article 23(3) shall be replaced by the following: 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 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). "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 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). The Commission shall inform the European Parliament in an annual communication about the assessments by the Member States."
Amendment  8 Proposal for a Directive Article 1 – paragraph 1 – point 1 b (new) Directive 2011/16/EU Article 25
Present text Amendment   (1b) Article 25 shall be replaced by the following: All exchange of information pursuant to this Directive shall be subject to the provisions implementing Directive 95/46/EC. However, Member States shall, for the purpose of the correct application of this Directive, restrict the scope of the obligations and rights provided for in Article 10, Article 11(1), Articles 12 and 21 of Directive 95/46/EC to the extent required in order to safeguard the interests referred to in Article 13(1)(e) of that Directive. "All exchange of information pursuant to this Directive shall be subject to the provisions implementing Directive 95/46/EC. However, Member States shall, for the purpose of the correct application of this Directive, restrict the scope of the obligations and rights provided for in Article 10, Article 11(1), Articles 12 and 21 of Directive 95/46/EC to the extent specifically required in order to safeguard the interests referred to in Article 13(1)(e) of that Directive."

PROCEDURE

Title	Mandatory automatic exchange of information in the field of taxation
References	COM(2013)0348 – C7-0200/2013 – 2013/0188(CNS)
Committee responsible        Date announced in plenary	ECON 4.7.2013
Opinion by        Date announced in plenary	CONT 4.7.2013
Rapporteur        Date appointed	Crescenzio Rivellini 19.7.2013
Date adopted	2.10.2013
Result of final vote	+: –: 0:	17 0 0
Members present for the final vote	Jean-Pierre Audy, Inés Ayala Sender, Martin Ehrenhauser, Jens Geier, Gerben-Jan Gerbrandy, Ingeborg Gräßle, Bogusław Liberadzki, Crescenzio Rivellini
Substitute(s) present for the final vote	Philip Bradbourn, Karin Kadenbach, Marian-Jean Marinescu, Markus Pieper, Czesław Adam Siekierski, Barbara Weiler
Substitute(s) under Rule 187(2) present for the final vote	María Auxiliadora Correa Zamora, Spyros Danellis, Wolf Klinz, Gesine Meissner

PROCEDURE

Title	Mandatory automatic exchange of information in the field of taxation
References	COM(2013)0348 – C7-0200/2013 – 2013/0188(CNS)
Date of consulting Parliament	27.6.2013
Committee responsible        Date announced in plenary	ECON 4.7.2013
Committee(s) asked for opinion(s)        Date announced in plenary	CONT 4.7.2013	JURI 4.7.2013
Not delivering opinions        Date of decision	JURI 19.6.2013
Rapporteur(s)        Date appointed	George Sabin Cutaş 18.6.2013
Discussed in committee	24.9.2013	17.10.2013
Date adopted	5.11.2013
Result of final vote	+: –: 0:	33 0 11
Members present for the final vote	Marino Baldini, Burkhard Balz, Jean-Paul Besset, Sharon Bowles, Udo Bullmann, Nikolaos Chountis, George Sabin Cutaş, Leonardo Domenici, Derk Jan Eppink, Diogo Feio, Markus Ferber, Jean-Paul Gauzès, Sylvie Goulard, Liem Hoang Ngoc, Syed Kamall, Jürgen Klute, Rodi Kratsa-Tsagaropoulou, Philippe Lamberts, Werner Langen, Astrid Lulling, Ivana Maletić, Hans-Peter Martin, Marlene Mizzi, Sławomir Nitras, Ivari Padar, Alfredo Pallone, Antolín Sánchez Presedo, Olle Schmidt, Peter Simon, Theodor Dumitru Stolojan, Kay Swinburne, Sampo Terho, Marianne Thyssen, Pablo Zalba Bidegain
Substitute(s) present for the final vote	Zdravka Bušić, Sari Essayah, Krišjānis Kariņš, Mojca Kleva Kekuš, Olle Ludvigsson, Thomas Mann, Gianni Pittella, Nils Torvalds
Substitute(s) under Rule 187(2) present for the final vote	Izaskun Bilbao Barandica, Yves Cochet, Mary Honeyball
Date tabled	12.11.2013