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As a first step, the G5 finance ministers plan to expand the automatic and multilateral exchange of information relating to capital income beyond the provisions of the EU’s Savings Directive. The five countries will launch a pilot project based on the arrangements made with the US in July 2012 implementing the US’s disclosure requirements under the Foreign Account Tax Compliance Act (FATCA), which serve as a model for subsequent bilateral agreements.
In their letter to the European Commission, the G5 finance ministers invited other EU Member States to join in the pilot, so that the enhanced system of automatic information exchange can be established as a new standard within the EU. The five finance ministers also called on all EU Member States to adopt the amending proposal to the Savings Directive without delay.
The new initiative to expand the automatic exchange of information in tax matters takes up recent international developments in this area, particularly within the G20, G8and OECD frameworks.