Cross-border exchange of tax information upon request and fundamental rights – Can the right balance be struck?: Joined cases C-245/19 and C-246/2019 État luxembourgeois contre B

Abstract

On 6 October 2020, in joined cases C-245/19 and C-246/19, État luxembourgeois contre B, the Court of Justice delivered a landmark ruling about the fundamental right to a judicial remedy against an information order issued by the national tax authorities of a Member State in the application of Directive 2011/16/EU. The Court ruled that the holders of the taxpayer’s information have the right to directly challenge the request to provide information but, differing from the Opinion of Advocate General Kokott, the Court decided that, when other remedies are available, the taxpayer under tax investigation and other third parties concerned do not have the right to direct judicial remedy against the information order. Likewise, the Court clarified how specific and precise the information requested must be in order to admit that the request for information is foreseeably relevant for the taxation of the concerned taxpayer. Following the Berlioz case, the ruling at hand continues to outline the content, scope and limits of fundamental rights in cross-border exchanges of tax information upon request in the European Union. However, this casuistic approach will not necessarily result in the development of a coherent and general framework of protection, which underlines the need for a common minimum standard to enhance the protection of fundamental rights in cross-border situations.