EU tax transparency rules on the automatic exchange of information between Member States are delivering value-add when it comes to countries’ ability to crack down on tax avoidance, according to a report published on the European Commission.

The report assesses Council Directive 2011/16/EU on administrative cooperation in the field of direct taxation. The report analyses the effectiveness, efficiency, coherence, relevance and the benefit of administrative cooperation for the EU Member States.

The report provides a first snapshot of the legislation underpinning the exchange of tax information on financial accounts and on the tax rulings that Member States provide multinational companies. The evaluation shows that Member States should now be receiving the information they need to fight tax fraud, evasion, and avoidance, and that the new rules have helped to deter taxpayers from hiding income or assets.