Ways to Fight Tax Avoidance, Tax Evasion and Tax Fraud within the European Union: One of the Innovative Policies Is Information Exchange

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Acuner S.

in: Rethinking European Union in A Changing World Politics, Economics And Issues, Ömer Uğur, Editor, Peter Lang Publishing, Inc., Berlin, pp.185-204, 2020

  • Publication Type: Book Chapter / Chapter Research Book
  • Publication Date: 2020
  • Publisher: Peter Lang Publishing, Inc.
  • City: Berlin
  • Page Numbers: pp.185-204
  • Editors: Ömer Uğur, Editor
  • Recep Tayyip Erdoğan University Affiliated: Yes


Globalization has removed the borders between countries. Therefore, interaction continues to occur at the highest level in all areas. One of the areas where interaction takes place is trade. In addition to the contributions of international trade to the world economies, it also causes disadvantageous situations. One of the disadvantageous consequences is the negative situation created by the desire by the trade earners to discard the tax burden. Tax avoidance, tax evasion, and tax fraud are taxpayers’ primary responses to avoid tax burden. The responses to tax do not only show up in international trade. Many income sources, such as taxpayers’ income in countries where they are residents, as well as the income from cross-border activities, are left unregistered with little or no notification. One of the issues that the European Union Commission addresses and applies to various policies to prevent is the informal economy. The most important policy developed especially in order to prevent tax losses arising from the informal economy is “information exchange”. The innovative policies of the European Union for the information exchange are the subject of this section. In this chapter, in the process that started with the European Union Council Directive numbered 77/799/ EEC, the legal changes that took place after the European Union Council Directive 2011/16/ EU came into force were accepted and recognised as both declarations of will to prevent tax loss and innovative legal policies. The scope of the section includes European Union legislation on information exchange and legal comments on European Union legislation in the literature. The section is a compilation and prepared by using the method of (verbal/idiomatic) grammatical interpretation. The most important result that emerges from the information given in the department is the fact that the improvement of the information exchange is the regulation of the scope of the mandatory automatic information exchange, especially in terms of new income types with expansion day by day.