With the aim at strengthening current measures and sets out possible new initiatives for eliminating fraud and evasion in Europe, the European Commission presents a Communication that adopts a holistic approach to tackle this problem. This holistic approach sets out a 3 tier approach aimed at attacking evasion and fraud from every possible angle.

The European Commission published a Communication that presents some ways to strengthen current measures and sets out possible new initiatives for eliminating fraud and evasion in Europe. In this Communication, the Commission sets out a 3 tier approach: at national level, EU level and international level. Before the end of the year, the Commission will present an Action Plan on fighting fraud and evasion based in the points adopted in the Communication with specific measures that could be rapidly developed. In tandem, the Commission will also come forward with its initiative on tax havens and aggressive tax planning.

Among the measures proposed, at national level Member States should focus on improving their administrative capacity to collect taxes, according to the Commission. In addition, National authorities should also make it easier for the willing to comply, for example, through voluntary disclosure programmes. EU instruments such as the one-stop-shop that was presented by the Commission in January 2012 and a possible Tax Web-Portal should also assist better compliance.

On the other hand, at EU level, the Commission proposes an agreement by Member States on the revised Savings Directive is essential. Moreover, a number of new ideas are presented. These include a possible European cross border tax identification number, a quick reaction mechanism for VAT fraud and minimum EU rules and sanctions for fraud and evasion. With regard to the measures proposes at international level, the mandates that the Commission has requested to negotiate stronger savings agreements with key neighbouring countries are crucial in that respect.