EU: Measures approving anti-abuse clause | KPMG | GLOBAL

EU: Measures approving anti-abuse clause

EU: Measures approving anti-abuse clause

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.


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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.

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