EC: Tackling Tax Avoidance – Commission tightens key EU corporate tax rules


The Commission proposed amendments to key EU corporate tax legislation, in order to significantly reduce tax avoidance in Europe.

The proposal will close loopholes in the Parent-Subsidiary Directive, which some companies have been using to escape taxation. In particular, companies will no longer be able to exploit differences in the way intra-group payments are taxed across the EU to avoid paying any tax at all. The result will be that the Parent-Subsidiary Directive can continue to ensure a level-playing field for honest businesses in the Single Market without opening opportunities for aggressive tax planning. Today’s proposal was foreseen in the Commission’s Action Plan against tax evasion last year (IP/12/1325) and will be an important contribution to the on-going battle against corporate tax avoidance at both EU and global level.

Algirdas Šemeta, Commissioner for Taxation said: „EU tax policy is heavily focussed on creating a better environment for businesses in the EU. This means breaking down tax barriers and tackling cross-border problems such as double taxation. But when our rules are abused to avoid paying any tax at all, then we need to adjust them. Today’s proposal will ensure that the spirit, as well as the letter, of our law is respected. As such, it will ensure greater revenues for national budgets and fairer competition for our businesses.”

Press release
Commission proposal for a Council Directive on the taxation of parent companies and subsidiaries of different Member States.
Impact assessment (SWD/2013/ 474), its summary, and the Commissioner’s statement (SPEECH-13-969).

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