The European Commission today announced that the Council of EU Foreign Ministers today approved two measures to address corporate tax avoidance and aggressive tax planning—an anti-abuse clause that is to be added to the Parent-Subsidiary Directive, and an agreement for the mandatory exchange of information between EU tax authorities.
According to today’s EC release, the amendment to the Parent-Subsidiary Directive introduces a mandatory anti-abuse provision—i.e., a new “de minimis” anti-abuse clause to allow EU Member States to put in place stricter or more specific domestic provisions, or double tax treaty anti-abuse provisions. An earlier amendment, in July 2014 (Directive 2014/86), already addressed provisions relating to hybrid loans.
EU Finance Ministers also took a final political decision on the automatic exchange of information between the tax authorities of the 28 EU Member States.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.