Tax Fraud and Evasion: New Standard Provision for Third-Country Agreements
On 25 May 2018, the Council adopted conclusions on the EU standard provision on good governance in tax matters for agreements with third countries. The conclusions should further advance the EU’s strategy regarding external taxation as well as measures against tax treaty abuse which called for a new standard provision in line with the evolution of international standards in the tax area.
In essence, the Council agreed to include an updated standard provision in relevant agreements that are to be concluded with third countries by the Union and its Member States. The following text is considered to be appropriate in this respect:
“The Parties recognise and commit themselves to implement the principles of good governance in the tax area, including the global standards on transparency and exchange of information, fair taxation, and the minimum standards against Base Erosion and Profit Shifting (BEPS). The Parties will promote good governance in tax matters, improve international cooperation in the tax area and facilitate the collection of tax revenues.”