European Union Savings Tax Directive

The European Union Savings Tax Directive was a regulation aimed at improving tax transparency among EU member states. Introduced in 2005, it required countries to share information about interest payments made to residents of other EU countries, helping tax authorities track unreported income from savings. This was intended to prevent tax evasion and ensure individuals paid taxes on their savings interest. While it improved cooperation, it faced challenges and was eventually replaced by more comprehensive measures, reflecting the EU's ongoing efforts to combat tax avoidance and promote fair taxation practices.