The European Commission recently ran a call for feedback on the EU Anti-Avoidance Directive (2016/1164), also known as ATAD 1. This directive is a key instrument in the fight by the European Union against tax avoidance by multinationals corporations, as it sets out minimum standards for a number of anti-avoidance measures that have to be adopted by the EU member countries.
Using data from the latest edition of the Corporate Tax Haven Index, we submitted our response, urging the EU Commission to strengthen the Directive’s Controlled Foreign Company (CFC) rules, make the limitations on the deduction of interest more watertight by abolishing the legacy debt loophole, and include limitations on the deduction of royalties and service payments in its updated version.