ARTICLE · 11 MAY 2017

Anti-Tax Avoidance: ATAD II

ELVINGER HOSS PRUSSEN, société anonyme

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Further to the adoption of the Anti-Tax Avoidance Package including the first Anti-Tax Avoidance Directive (EU) 2016/1164 of 12 July 2016 ("ATAD")...

LuxembourgTax

Elvinger Hoss Prussen

Further to the adoption of the Anti-Tax Avoidance Package including the first Anti-Tax Avoidance Directive (EU) 2016/1164 of 12 July 2016 ("ATAD"), the ECOFIN Council requested the Commission to expend the territorial scope of the ATAD in order to include hybrid mismatches involving third countries.

This is the objective of the current proposal on hybrid mismatches agreed during the ECOFIN meeting of 21 February 2017 ("ATAD II"), amending the ATAD, which prohibits multinational companies from tax avoidance practices by exploiting differences between the tax systems of EU Member States and non-EU States. ATAD II is modelled on the rules contained in the OECD BEPS report Action 2 on hybrid mismatch arrangements but also covers the branch mismatch structures.

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