United States

European Union anti tax avoidance


The European Commission is advancing its crusade for fair and efficient taxation in the European Union (EU) through proposals contained in an anti-tax avoidance package. The package is most likely in response to the Organisation for Economic Co-operation and Developmentā€™s base erosion and profit shifting project and increased cross-border demands for a stronger approach to fighting tax abuse.

Key aspects of the package include:

  • Measures that counteract commonly used tax avoidance strategies, such as an exit tax and rules against excessive leverage
  • Proposals to limit income deferral and the use of hybrid planning
  • Proposals that EU member states share tax-related information associated with multinational corporations through country-by-country reporting
  • A promotion of good international tax governance
  • Measures to be taken against those countries that refuse to respect the EU good tax governance standards, such as by creating a common EU listing of all tax haven countries

The European Commission will submit the proposals to the European Parliament for review and amendment. The European Parliament will then submit the proposals to the European Council for implementation, if it is so decided.

If you have operations in the EU, you should continue to monitor this proposal and assess the future tax risks associated with doing business in the EU. If enacted, these proposals would apply throughout the EU.

Ramon Camacho


Ramon advises businesses on international tax and capital markets issues, including withholding tax, inbound and outbound investment, and Treasury matters. Contact him at ramon.camacho@rsmus.com.

Areas of focus: International Tax PlanningWashington National Tax