On March 2, 2012, the European Commission was called on by the European Council to immediately develop solid methods to improve the battle against tax evasion and tax fraud, including those that are related to 3rd countries and to send a report by June 2012.
The European Parliament adopted a resolution in April that echoes the immediate need to action this area.
The Commission adopted the June Communication that outlined how to improve tax compliance to refuse evasion and fraud, through an improved use of current instruments, while adopting pending proposals from the Commission. This communication identified several areas where legislative coordination and action would benefit the Member States and the EU, which demonstrates the extra value of working hand in hand in the fight against tax evasion and fraud.
Both fighting tax evasion and fraud and tax collection are the responsibilities of national authorities from different EU countries. Much of the fraud, however, happens across different countries and just one single country doing steps to resolve this problem will not achieve any significant success.
The EU has provided tools to assist member countries in their fight against tax fraud more efficiently. There are now action plans in place to move up a gear.
Through Information Technology and other modern methods, the EU allows for information exchange and cooperation among the member countries regarding VAT, savings taxation and all other sorts of taxes. For example, a mutual assistance system in the EU enables tax authorities to recover any unpaid taxes from one European Union country to another.
The council has adopted a simple video (see above) without language barriers to get its message out to the whole of the EU. It is entitled “The missing part” and shows what life would look like with a missing part from many everyday objects representing the missing part of the Europe wide tax bill, take a look at this simple but effective video.