EC releases anti-tax avoidance package

The European Commission presented its package of new measures against corporate tax avoidance on 28 January for a coordinated EU-wide response notably through the implementation of the global standards developed under the OECD/G20 base erosion and profit shifting (BEPS) project. Key features of the new proposals in the anti-tax avoidance package include:

• legally binding measures to block the most common methods used by companies to avoid paying tax;
• a recommendation to member states on how to prevent tax treaty abuse;
• a proposal for member states to share tax-related information on multinationals operating in the EU;
• actions to promote tax good governance internationally; and
• a new EU process for listing third countries that refuse to play fair.

The EC proposal came one day after 31 countries signed the multilateral competent authority agreement (MCAA) at the...