EU Developments: ECOFIN Council approve Anti-Tax Avoidance Directive has been saved
EU Developments: ECOFIN Council approve Anti-Tax Avoidance Directive
On 21 June, the EU’s ministers of Finance and Economic Affairs, the so-called ECOFIN Council, unanimously approved the Anti-Tax Avoidance Directive (“ATAD”).
This measure was originally proposed in January of this year and has been amended over the various meetings of the Council since then. In the public session of the ECOFIN Council on 17 June, Minister Noonan said that Ireland was committed to tackling tax avoidance and “remains committed to finding EU solutions to tackle this issue where possible”.
He noted that the amended directive was a “finely balanced compromise” and one which Ireland could support subject to the removal of the switch-over rule, which was subsequently dropped. The rules in the ATAD have to fit within 28 separate corporate tax systems and the directive notes that they should be limited to general provisions leaving implementation to Member States as they “are better placed to shape the specific elements of those rules in a way that fits best their corporate tax systems”.
To read more, please download the full document.