On 27 September 2019, the Federal Ministry of Finance (BMF) published a draft law to introduce an obligation to report cross-border tax arrangements (as at 26 September 2019). The law to introduce an obligation to report cross-border tax arrangements is intended to implement the relevant EU directive into national law and to introduce an obligation to report certain cross-border tax arrangements in accordance with the political requirements for the support.
The relevant information will also be exchanged between EU Member States. This should enable Member States to identify tax avoidance practices and profit transfers in a timely manner and to close unwanted leeway by creating or amending relevant legislation. At the same time, it also aims to improve the ability of Member States’ tax authorities to respond.