Overview
EU Releases Draft Anti-Tax Avoidance and Tax Information Exchange Legislative Proposals: Drafts of two European Commission legislative proposals were made public today. One of the proposals contains rules against tax avoidance practices that directly affect the functioning of the internal market. In particular, the proposal responds to the finalization of the base erosion and profit sharing (BEPS) project as well as to demands from the European Parliament, several member states, businesses and civil society, and certain international partners for a stronger and more coherent approach against corporate tax abuse. Among the topics covered by the proposal are the deductibility of interest, exit taxation, a general anti-abuse rule, controlled foreign company rules, and a framework to tackle hybrid mismatches.
The second legislative proposal requires member state authorities to exchange country-by-country tax reporting details of multinational companies and aims at achieving a degree of uniformity in implementing country-by-country reporting across the EU.