EU targets tax evasion: Infringement proceedings start
The European Commission has launched infringement proceedings against Germany, Hungary, Poland, and Romania for failing to exchange timely information about income earned by individuals and companies using online platforms.
The directive on administrative cooperation in taxation introduced new tax rules for transactions on digital platforms, effective from 1 January 2023.
Reporting should take place in two stages. First, online platforms were required to collect information on income earned by individuals and companies throughout 2023 and report it to the platform's member state. Subsequently, that member state had to exchange this information with other states by 29 February 2024.
The EC emphasized that timely reporting and exchange were crucial for ensuring a level playing field in the Union.
In its view, Germany, Hungary, Poland, and Romania have failed to fulfil the obligation to exchange necessary information with the tax authorities of other member states, hindering the enforcement of tax regulations.
Two months' time
The mentioned four countries have two months to respond and address the shortcomings indicated by the EC.
If the member states do not provide a satisfactory response, the EC may decide to proceed to the next stage of the infringement proceedings.
