European Union Leaders Reach Political Agreement on Measures to Fight Tax Evasion and Tax Fraud

Fighting tax evasion and tax fraud was one of the two main themes at the European Council meeting on May 22, 2013 in Brussels. Leaders of 27 member states of the European Union agreed that tax fraud and tax evasion limit countries' capacity to raise revenue and carry out their economic policies. In times of tight budgetary constraints, combating tax fraud and tax evasion is more than an issue of tax fairness - it becomes essential for the political and social acceptability of fiscal consolidation. The European Council agreed to accelerate work in the fight against tax fraud, tax evasion, and aggressive tax planning. In particular, work will be taken forward as a matter of priority on promoting and broadening the scope of the automatic exchange of information at all levels.^[2]