Daily Tax Update - June 22, 2016: European Council Approves Anti-Tax-Avoidance Directive

European Council Approves Anti-Tax-Avoidance Directive:  On June 21, the European Council agreed on a draft directive addressing tax avoidance practices commonly used by large companies.  The directive is part of a set of January 2016 proposals aimed at strengthening the rules against corporate tax avoidance, and builds on 2015 Organization for Economic Cooperation and Development (OECD) recommendations to address tax base erosion and profit shifting (BEPS).

The directive sets forth anti-tax-avoidance rules in five specific areas: interest limitation, exit taxation, controlled foreign company rules for profit-shifting, hybrid mismatches, and general anti-abuse rules to cover gaps in a county’s local rules.

House Republicans Unveil Health Care Plan:  Today, House Republicans released their health care plan to repeal and replace the Affordable Care Act.  The plan features individual tax credits for people to buy coverage from private insurers, proposals for medical liability reform, and expanded access to health savings accounts.  It also proposes putting $25 billion into a high-risk pool for people with preexisting conditions and transforming Medicaid into state block grants or individual per-capita allotments.