Luxembourg Finance Minister Luc Frieden said European Union plans on sharing tax data lack coherence and could drive investors away.
Frieden said the EU shouldn’t move ahead with a new proposal to require automatic exchange of information on more kinds of income because global standards aren’t in place. The European Commission this month proposed making dividends, capital gains and other forms of financial income subject to automatic exchange of information among tax authorities beginning in 2015.
“This is not coherent and also not efficient in the fight against tax fraud,” Frieden told reporters in Luxembourg today. “If these products fall under automatic information exchange in Europe, but not in the U.S. and Asia, it will lead to an outflow of capital from Europe.”