Anti Tax Avoidance Directive adopted
On June 20th, 2016 the EU Member States adopted the Anti Tax Avoidance Directive. This Directive consist of five points which should counter harmful tax practices, but will definitely also affect all genuine business industry wide. The five points of the ATA Directive are:
- General Anti Abuse Rule
- Controlled Foreign Company rule
- Hybrid mismatch rule
- Interest limitation rule
- Exit tax
The majority of the rules have to be implemented by the EU Member States before January 1th, 2019. Although implementation could be as far away, companies will need to anticipate on implementation of this new Directive when taking decisions on for example the (re)structuring and/or (re)financing of activities.