EU Directive 2021/514 on administrative cooperation in the field of taxation – Joint audits

Directive 2021/514 of 22.03.2021 (date of transposition: 31.12.2023) has introduced i.a. a new tool in the key area of administrative cooperation among Member States (MS) in the field of EU taxation: Joint Audits (see below new art. 12a Dir. 2016/11/UE, DAC).

Joint audits will take the form of administrative enquiries conducted jointly by the competent Authorities of two or more MS, and be linked to one or more persons of “common or complementary interest” to those MS.

It represents a strategic tool for tackling TaxEvasion and TaxAvoidance within Europe, esp. in TransferPricing issues, since it is:

• an additional tool available for administrative cooperation along with:
  ▪️ presence of officials of another MS,
  ▪️ participation in administrative enquiries,
  ▪️ simultaneous controls.
• not still available in VAT and Excise field (Reg. 904/2010/UE). However in this area it is expected an impact from the institution of the European Public Prosecutor’s Office, which has no competence on direct taxation;
• equivalent to Joint Audits in OECD context (see FTA Report 2010 and 2019) within the scope of art. 26 OECD MC.

Source eur-lex.europa.eu

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