Pierre Moscovici, the European Commissioner for Taxation
considers that 2016 should be the year of corporate tax reform and
fiscal transparency for the EU. Yesterday’s
announcements which included a draft directive to tackle base
erosion and profit shifting (“BEPS”)
are the first steps in an ambitious programme to introduce EU-wide
corporate tax reform. Kevin Brady, chairman of the US Ways and
Means Committee has already responded to the proposals describing
them as “punitive policy changes” and calling for
immediate US reform on international tax.
The draft directive designed to implement some of the BEPS
recommendations is described as an Anti Tax Avoidance Directive
(the “ATA Directive”) and includes
interest limitation rules, exit tax provisions, a so-called
‘switch-over’ clause, a general anti abuse rule, CFC
rules and anti-hybrid provisions. Please click here to read about the ATA Directive.
