The EU Parliament’s economic and monetary affairs committee has voted to approve the Commission’s proposal for an anti-tax avoidance directive amendment extending the hybrid mismatch rules to non-EU countries. The committee's report will now go to the Council, where the amendment will require unanimous agreement to be adopted.
The hybrid mismatch rules prevent multinational groups avoiding tax by exploiting differences in the tax systems between jurisdictions. Commenting on the committee’s backing of the amendment by 44 votes to nil, rapporteur Olle Ludvigsson said: ‘these arrangements are frequently used by the largest companies with the sole purpose of reducing corporate taxation. We have seen it in both the Apple case and in the McDonald’s case. It is about time that these corporations pay their fair share of taxes’.
Implementation of this amendment to the directive is set for 1 January 2020.
The EU Parliament’s economic and monetary affairs committee has voted to approve the Commission’s proposal for an anti-tax avoidance directive amendment extending the hybrid mismatch rules to non-EU countries. The committee's report will now go to the Council, where the amendment will require unanimous agreement to be adopted.
The hybrid mismatch rules prevent multinational groups avoiding tax by exploiting differences in the tax systems between jurisdictions. Commenting on the committee’s backing of the amendment by 44 votes to nil, rapporteur Olle Ludvigsson said: ‘these arrangements are frequently used by the largest companies with the sole purpose of reducing corporate taxation. We have seen it in both the Apple case and in the McDonald’s case. It is about time that these corporations pay their fair share of taxes’.
Implementation of this amendment to the directive is set for 1 January 2020.
