REPORT on the proposal for a Council decision on the conclusion, on behalf of the European Union, of the Amending Protocol to the Agreement between the European Community and the Principality of Liechtenstein providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation of savings income in the form of interest payments

18.11.2015 - (COM(2015)0395 – C8‑0320/2015 – 2015/0175(NLE)) - *

Committee on Economic and Monetary Affairs
Rapporteur: Sander Loones
(Simplified procedure – Rule 50(1) of the Rules of Procedure)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a Council decision on the conclusion, on behalf of the European Union, of the Amending Protocol to the Agreement between the European Community and the Principality of Liechtenstein providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation of savings income in the form of interest payments

(COM(2015)0395 – C8‑0320/2015 – 2015/0175(NLE))

(Consultation)

The European Parliament,

–  having regard to the proposal for a Council decision (COM(2015)0395),

–  having regard to the draft Amending Protocol to the Agreement between the European Community and the Principality of Liechtenstein providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation of savings income in the form of interest payments (11798/2015),

–  having regard to Article 115 and Article 218(6), second subparagraph, point (b), and paragraph (8), second subparagraph, of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C8‑0320/2015),

–  having regard to Rules 59, 108(7) and 50(1) of its Rules of Procedure,

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0334/2015),

1.  Approves conclusion of the Amending Protocol to the Agreement;

2.  Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and of the Principality of Liechtenstein.

EXPLANATORY STATEMENT

The European Union and Liechtenstein signed an agreement on 28 October 2015 on the automatic exchange of financial account information, aimed at improving international tax cooperation and compliance.

The agreement represents an important step in ongoing efforts to clamp down on tax fraud and tax evasion and upgrades the 2004 agreement that ensured that Liechtenstein applied measures equivalent to those in an EU directive on the taxation of savings income.

Under the agreement, the EU and Liechtenstein will automatically exchange information on the financial accounts of each other's residents, starting in 2017. The aim is to address situations where a taxpayer seeks to hide capital representing income or assets for which taxes have not been paid.

The agreement aims at ensuring that Liechtenstein applies strengthened measures that are equivalent to the EU legal framework, as upgraded in December 2014 (amending the Directive on Administrative Cooperation, "DAC2") and that it complies with the automatic exchange of financial account information promoted by the 2014 OECD global standards.

Further provisions aim at securing that exchanged information concerns not only income such as interest and dividends, but also account balances and proceeds from the sale of financial assets.

Tax administrations in the member states and in Liechtenstein will be able to

- identify correctly and unequivocally the taxpayers concerned;

- administer and enforce their tax laws in cross-border situations;

- assess the likelihood of tax evasion being perpetrated;

- avoid unnecessary further investigations.

Your rapporteur fully welcomes and supports the agreement.

The EU and Liechtenstein have agreed to conclude the agreement in time to enable entry into force on 1 January 2016, and your rapporteur very much urges that this deadline is respected.

RESULT OF FINAL VOTE IN COMMITTEE RESPONSIBLE

Simplified procedure - date of decision	10.9.2015
Date adopted	13.11.2015