X. whereas the practice of rulings developed, in the framework of a closer and more cooperative relationship between tax administrations and taxpayers, as a tool to tackle the increasing complexity of the tax treatment of certain transactions in an increasingly complex, global and digitalised economy; whereas – despite Member States’ asserting that rulings are not discretionary, but merely a tool to clarify existing tax legislation, while keeping them secret – its special committee’s work has confirmed that tax rulings can be issued without any legal framework through informal or discretionary arrangements, that support tax-driven stru ...[+++]ctures which rely on tax planning tools typically used by MNCs to reduce their tax contribution; whereas this seems to be an issue particularly – although not exclusively – with rulings related to pricing of intra-company transfers (so-called Advance Pricing Agreements); whereas, in providing legal certainty only to some selected actors, they might create inequality between companies to which they have been granted and companies in the same sector which have no access to them;

107. Highlights, in this connection, the fact that not only cross-border but also national rulings can impact other Member States, and calls, therefore, for an extension of the automatic exchange of information to all rulings issued by, or on behalf of, the government or the tax authority of a Member State, or any territorial or administrative subdivisions thereof, which are still active at the date of entry into force of the directive; strongly insists on the key role of the Commission’s involvement in the process of data collection and analysis concerning rulings;

73. Recalls that tax rulings should be aimed at providing legal certainty and create legitimate expectations for their beneficiaries; stresses, against a background where national rulings can be challenged by state aid rules at EU level, that a risk exists of mass notifications of individual rulings requests from Member States for advance clearance by the Commission with a view to avoiding legal uncertainties for tax administrations and undertakings; stresses that an increased capacity within the Commission and improved processes for transmitting information are the appropriate ways to handle an increased flow of notifications as well ...[+++]as the greater transparency required from Member States in tax matters;

The proposal for the automatic exchange of information on tax rulings is central to this package.

In each case, a tax ruling issued by the respective national tax authority artificially lowered the tax paid by the company.

We are also working hard with the Council to conclude an agreement on the automatic exchange of information on tax rulings by the end of the year.