Tax Alert | European Commission publishes a legislative proposal to prevent the misuse of shell entities for tax purposes

On December 22, 2021 the European Commission published a legislative proposal to prevent the misuse of shell entities for tax purposes (“Proposal”). The Proposal is part of a wider ambitious agenda to combat tax avoidance and tax evasion. It has far-reaching consequences for multinational group-, private equity-, and investment fund structures having established an (intermediate) undertaking in an EU Member State engaged in real property owning, financing, leasing, service, IP- as well as holding activities, unless satisfactory managerial and operation substance indicators are met. The Proposal goes further than present beneficial ownership or tax avoidance practices developed in past years. Subject to unanimous approval by Member States the effective date of the Proposal is 1 January 2024.

In this white paper, the tax experts of BUREN discuss the most important topics of the proposal. The white paper can be downloaded via the button below.

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Download white paper | European Commission publishes a legislative proposal to prevent the misuse of shell entities for tax purposes