The end of bank secrecy in EU?

14.10.2014

Council of EU in ECOFIN formation found consensus on the creation of EU Directive on fighting tax avoiding and fraudulent activities in taxation sphere.

The Directive will amend already existing EU rules on exchange of tax information between member states. These rules are first of all relate to the information on taxpayer’s income, which he gained in another state than the state of his/hers residence.

“Today we made a major step towards greater transparency, which can be considered as end of bank secrecy in taxation sphere in European Union”, - evaluated Council meeting Italian Minister of finance, who chaired the meeting.

New Directive will be adopted without additional discussions once its text will be approved in all EU languages.

Source: http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/ecofin/145105.pdf

Expert’s opinion

What a strange reaction to the agreement on combating tax avoidance. Where are taxes and where is bank secrecy? How come that this two categories are considered as equal to each other?

Bank secrecy is in place, it did not go anywhere. Earlier before this decision was made there were mechanisms which allowed banks to disclose some data. Now this processes just became easier and automatic.

For the honest business it all is still the same.

Criminals, I hope, will find it tougher to commit their doings.

The area will be cleaned up from business that does not pay taxes, and therefore has an advantage before the honest business.

The honest business will benefit from unfair competitors leaving the market

Yaroslav Lomakin ( Managing Partner, Honest & Bright Company)