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Tackling Tax Avoidance: Commission proposes tightening key EU corporate tax legislation

Tackling Tax Avoidance: Commission proposes tightening key EU corporate tax legislation
  • Start date : 25/11/2013 00:00:00
  • End date : 25/11/2013 23:59:59
  • Where : Brussels, Belgium

Legislative Action, European Commission, Economy, finance, tax and competition, Business

On 25 November, the European Commission will adopt a proposal to amend the Parent Subsidiary Directive (2011/96/EU) in order to close off opportunities for corporate tax avoidance.

 

The Parent Subsidiary Directive was originally conceived to prevent the double taxation of same-group companies based in different Member States. However, loopholes in the Directive have been exploited by some companies to avoid paying any taxes at all. The proposal aims to close these loopholes. First, it will introduce a common anti-abuse rule into the Directive. This will allow Member States to ignore artificial arrangements used for tax avoidance purposes and to tax on the basis of real economic substance. Second, it will ensure that the Directive is tightened up so that specific tax planning arrangements are no longer eligible for the tax exemptions provided under the Directive.

 

Algirdas Šemeta, the European Commissioner for Taxation, Customs, Anti-Fraud, Statistics and Audit will present the proposal at the midday briefing in the Commission's press room. Press materials will be available on the day.