Recovery of claims relating to taxes, duties and other measures

SUMMARY OF:

Directive 2010/24/EU encouraging mutual assistance between EU countries for the recovery of claims relating to taxes, duties and other measures

WHAT IS THE AIM OF THE DIRECTIVE?

It aims to combat tax evasion by ensuring that EU countries work more closely together (they must provide assistance) with regard to the recovery of claims relating to taxes, duties and related measures levied in another EU country.

KEY POINTS

• This directive applies to claims relating to:
  • all taxes and duties levied by or on behalf of any EU country or on behalf of the EU as a whole;
  • refunds, interventions and other measures which contribute to the total or partial financing of the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD);
  • levies and other duties on the sugar sector market.
• EU countries were to notify the European Commission of their competent national authority or authorities by 20 May 2010 for publication in the Official Journal of the EU. Each competent authority must designate a central liaison office which will be responsible for contacts with other EU countries in this field.

Request for information

A competent authority is obliged to provide another competent authority with any information relevant to that applicant authority in the recovery of its claims, except if:

• the requested authority would not be able to obtain such information for the recovery of similar claims occurring in its own country;
• the information would disclose any commercial, industrial or professional secrets;
• the disclosure of the information would put at risk the security or contravene the public policy of the requested EU country.

Request for notification of documents

• When requested for notification of documents relating to claims, the requested authority must notify to the addressee all documents which emanate from the applicant EU country relating to a claim or to its recovery.
• The request for notification must include relevant information, such as the name and address of the addressee, the purpose of the notification, a description of the nature and amount of the claim, and the contact details of the offices responsible for the documents and for obtaining further information.

Recovery procedures

• Any available appropriate recovery procedures must be applied before the applicant authority makes a request for recovery, except where:
  • it is evident that there are insufficient or no assets for recovery in the applicant EU country but that the person concerned has the necessary assets in the requested EU country;
  • it would result in disproportionate difficulty.
• Any request for recovery must be accompanied by a uniform instrument permitting enforcement in the requested EU country.
• The requested competent authority will employ the powers and procedures provided under the laws, regulations or administrative provisions of the requested EU country regarding claims on the same or similar tax or duty. If the requested authority does not consider that the same or similar taxes or duties are applicable in the requested EU country, it shall instead apply the rules relating to tax levied on personal income.

Disputes

• Disputes relating to the claim, the initial or uniform instrument permitting enforcement, and the validity of a notification by the applicant authority are the responsibility of the competent authorities of the applicant EU country. Disputes relating to the validity of a notification made by a competent authority of the requested EU country will be brought before the competent authority of that EU country.
• The applicant authority may make a request for recovery of a contested claim. If the claim is successful, the applicant authority will be responsible for the reimbursement of the amount recovered, in addition to any compensation due.

Amendment or withdrawal of the request for recovery assistance

The applicant authority must immediately notify the requested authority of any amendment to or withdrawal of its request for recovery, detailing the reasons for amendment or withdrawal.

Request for precautionary measures

Where the claim or the instrument permitting enforcement in the applicant EU country is contested at the time when the request is made, the requested authority will take precautionary measures, in accordance with its national law, to ensure recovery when requested to do so by the applicant authority.

Limits to the requested authority’s obligations

The requested authority is not obliged to grant the recovery assistance if:

• recovery of the claim would result in serious economic or social difficulties in the requested EU country;
• the initial request for assistance relates to claims more than 5 years old;
• the total sum of the claims is less than EUR 1 500.

General rules

• Any information and documents disclosed under this directive will be covered by the obligation of official secrecy and will therefore be protected under the appropriate national law of the EU country which received it.
• This directive repeals Directive 2008/55/EC from 1 January 2012. References to the repealed directive will be understood as references to this directive.

FROM WHEN DOES THE DIRECTIVE APPLY?

It has applied since 20 April 2010. EU countries had to incorporate it into national law by 31 December 2011.

MAIN DOCUMENT

Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures (OJ L 84, 31.3.2010, pp. 1-12)

last update 20.11.2017