Improving the use of internationally exchanged tax data in Poland and Slovakia

With this project, The Commission provided technical support to the Financial Directorate of the Slovak Republic and to the Polish National Revenue Administration, with the aim of making better use of the tax data exchanged in the context of the Directive on Administrative Cooperation in the field of taxation (DAC). The project helped the beneficiary authorities in their fight against aggressive tax planning, tax fraud, tax evasion, and tax avoidance.

Context

The fight against cross-border tax fraud, evasion, and avoidance is high on the EU tax agenda, of which the Directive on Administrative Cooperation in the field of taxation (DAC) is a critical pillar. Yet, EU institutions and EU Member States identified various weaknesses and challenges related to the implementation of DAC, potentially leading to inefficiencies in Member States’ use of internationally exchanged tax information. The beneficiary authorities therefore requested technical support to improve their processing and use of certain types of internationally exchanged tax data (Poland: DAC1 to DAC4, Slovakia: DAC2 and DAC4).

Support delivered

At the end of the 20-month project, each beneficiary authority has at their disposal:

• Diagnostic report on the current situation regarding the processing and use of the incoming international tax data;
• Design report of the future situation regarding the processing and use of the incoming international tax data;
• Gap analysis and transition plan to achieve the designed future state;
• Operational guidelines and training on the evaluation and use of the incoming international tax data;
• Specifications for an IT solution.

Results achieved

The technical support aided the beneficiary authorities to increase and improve their use of the internationally exchanged tax information. The project notably enhanced both authorities’ capacities and preparedness to implement DAC (Poland: DAC1 to DAC4, Slovakia: DAC2 and DAC4) by targeting operational, technological, and organisational aspects which underpin the effective use of the tax data received under DAC.

The project should, over the longer-term, contribute to enforcing tax rules, ensuring fair taxation, safeguarding the mobilisation of revenue, fair market competition, and economic growth.