On the Economic and Financial Affairs Council (ECOFIN) regular meeting in Brussels on March 13, 2018, the Ministers are supposed to reach an agreement on a proposal for greater transparency in tax planning schemes. The proposal intends to deal with tax transparency for intermediaries by mandatory reporting, such as tax advisors, lawyers or accountants, aiming to fight tax avoidance and potentially harmful planning schemes.
Recent scandals (including the famous Paradise Papers) have indicated that 'intermediaries' play a significant part in helping multinationals and wealthy individuals escape their fair share of tax in the EU, benefiting from the secret culture provided by some countries and institutions. In this case, the Commission finds it important to compel the intermediaries to notify authorities about cross-border techniques they sell to clients for tax avoidance or tax affairs they arrange with techniques bearing one or more tax avoidance features. This information must be shared among all the tax authorities within the EU to identify the regulatory weaknesses. All eligible accountants, advisers, lawyers, banks etc. will be covered by the new rule.
Arrangements and techniques with one or more following features should be notified to the government:
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):