27.12.77 Official Journal of the European Communities No L 336/15 (Acts whose publication is not obligatory) COUNCIL COUNCIL DIRECTIVE of 19 December 1977 concerning mutual assistance by the competent authorities of the Member States in the . field of direct taxation (77/799/EEC) THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the Euro- pean Economic Community, and in particular Article 100 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parlia- ment (1), Having regard to the opinion of the Economic and Social Committee (2), Whereas practices of tax evasion and tax avoidance extending across the frontiers of Member States lead to budget losses and violations of the principle of fair taxation and are liable to bring about distortions of capital movements and of conditions of competition; whereas they therefore affect the operation of the common market; Whereas, for these reasons the Council adopted on 10 February 1975 a resolution on the measures to be taken by the Community in order to combat inter- national tax evasion and avoidance (3); Whereas the international nature of the problem means that national measures, whose effect does not (1) OJ No C 293, 13. 12. 1976, p. 34. () OJ No C 6, 7. 3. 1977, p. 66. () OJ No C 35, 14. 2. 1975, p. 1. extend beyond' national frontiers, are insufficient; whereas collaboration between administrations on the basis of bilateral agreements is also unable to counter new forms of tax evasion and avoidance, which are increasingly assuming a multinational character; Whereas collaboration between tax administrations within the Community should therefore be strength- ened in accordance with common principles and rules; Whereas the Member States should, on request, ex- change information concerning particular cases; whereas the State so requested should make the necessary enquiries to obtain such information; Whereas the Member States should exchange, even without any request, any information which appears relevant for the correct assessment of taxes on in- come and on capital, in particular where there ap- pears to be an artificial transfer of profits between enterprises in different Member States or where such transactions are carried out between enterprises in two Member States through a third country in order to obtain tax advantages, or where tax has been or may be evaded or avoided for any reason whatever; Whereas it is important that officials of the tax ad- ministration of one Member State be allowed to be present in the territory of another Member State if both the States concerned consider it desirable;