The Luxembourg Ministry of Finance has announced a pivotal enhancement in the fight against tax fraud, as the Luxembourg Inland Revenue (Administration des contributions directes – ACD) and the Registration, Estates and VAT Administration (AED) formalize their partnership effective June 24, 2024. Finance Minister Gilles Roth emphasized the importance of this collaboration, stating, “Our growing synergy between the two tax administrations represents a crucial advancement in our fight against tax fraud. It will ensure greater compliance with tax regulations and improve the efficiency of our operations while safeguarding data privacy.”
The agreement was solidified with the signing of a memorandum outlining the implementation of the law from December 19, 2008, which governs inter-administrative and judicial cooperation and fortifies the resources available to tax authorities. This significant event took place at the Ministry of Finance with Christian Buttel, Deputy Director of the ACD, and Jean-Paul Olinger, Director of the ACD, present alongside the finance minister. Romain Heinen, director of the Administration des contributions directes, noted, “This marks a substantial upgrade in our current collaborative framework.” Jean-Paul Olinger added, “Our partnership is mutually beneficial for both administrations.”
The memorandum highlights key initiatives designed to enhance cooperation and combat tax evasion:
- Enhanced Communication: Tax offices will now see an improvement in exchanges, allowing not just the primary employees but also their deputies to engage in the communication process.
- Mandatory Information Sharing: Mandatory spontaneous exchanges of information will occur when specific thresholds—pertaining to turnover and deductible expenses—are surpassed, with a commitment to evolving these thresholds based on ongoing practice.
- Streamlined Refund Information Exchange: Refund-related information will now be included in spontaneous exchanges through electronic means, facilitating the issuance of summons to third-party holders (STD) as needed.
- Coordinated Simultaneous Inspections: Simultaneous inspections will be centrally coordinated. Additionally, tax offices will now have the ability to participate in these audits alongside the Audit Service (ACD) and the Anti-Fraud Service (AED).
- Ongoing Assessments: Regular evaluations of the cooperation between the two directorates will enable continuous feedback, ensuring that cooperative efforts can be systematically improved.
This renewed commitment to tackling tax fraud is a significant advancement for Luxembourg’s fiscal administration, promoting transparency and integrity within its financial landscape. For more details, visit the Ministry of Finance’s official announcement.
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