European Commission supports the automatic exchange of information on bank accounts between member states and believes it is unacceptable for Austria to refusing to change its bank secrecy rules, while Luxembourg came forward to take a step in this direction, according to AFP.
“It is unacceptable that a member state blocks this,” said Emer Traynor, spokesman for European Union Tas Commissioner. He added: “It would appear very difficult for (Austria) to maintain its position… when all member states are ready” to agree on this matter.
Traynor showed that there are clear rules and very strong standards in the EU on the exchange of information and a total of 25 countries have pledged to respect the rules. Austria and Luxembourg are the only ones who refuse, claiming bank secrecy, to automatically send information of EU residents’ accounts at the request of the judicial authorities, said the spokesman.
A directive that came into force in 2013 provides that member states can not refuse the transmission of information simply because the information is held by a bank or other financial institution.
Since January 2015, the EU plans to impose an automatic exchange of information in five categories of income and capital, provided that all member states agree.
Luxembourg authorities on Sunday declared themselves ready to relax their position after Germany and France asked them and Austrian government, to change their bank secrecy rules.
The European Commission has welcomed Monday statements by Luxembourg Finance Minister Luc Frieden. “We want to strengthen cooperation with foreign tax authorities,” said Luc Frieden, adding: “The international trend is going toward an automatic exchange of bank deposit information. We no longer strictly oppose that. Luxembourg does not rely on clients who want to save on their taxes.”
Minister Frieden’s statements were “welcomed very strongly” by the Commission, Traynor said. EU finance ministers will have an informal meeting Friday and Saturday in Dublin considered by Germany a good opportunity to discuss the issue of tax evasion. The European Commission has indicated that a decision on this matter will be made during Irish presidency of the EU.
After the scandal in France of the hidden account in Switzerland of former French Minister for Budget Jérôme Cahuzac, indicted for tax fraud, French authorities spport the automatic exchange of information in the EU, with the introduction of a law such as that adopted in the U.S. in 2010, to combat tax evasion.
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