In last week’s Weekly Tax Matters we discussed the new Anti-Tax Avoidance Package unveiled by the European Commission (EC) on 28 January 2016. This includes two legislative proposals: a directive addressing certain anti-base erosion and profit shifting (BEPS) issues and an amendment to the Directive on Administrative Cooperation to include non-public country-by-country reporting (CBCR). It also contains a Communication on an External Strategy for Effective Taxation, which proposes a common approach to tax good governance towards third countries, and a Recommendation on Tax Treaties. Further commentary has now been prepared to provide a UK perspective of the proposals, in particular for those groups which are either UK parented, or with a significant UK sub-group and UK operations.
This UK focused commentary can be found here. KPMG’s EU Tax Centre Tax Flash (ETF 273) provides further details of all the proposals at a pan European level. As noted in ETF 273, the proposals put forward by the EC require unanimous approval from all 28 Member States before becoming law. Whilst it is acknowledged that the EC is pressing for the quick adoption of the proposals, it is unclear at this stage how feasible this is at both a political and practical level. Regardless of this, the proposals do provide a valuable insight into the ‘direction of travel’ and wider intentions of the EC.
Please speak to your usual contact if you’d like to discuss any implications for your group.