The full EU Parliament 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 report will now go to the Council, where the amendment will require unanimous agreement to be adopted.
The Parliament’s 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 these corporations paid their fair share of taxes’.
The aim of the amendment is to prevent opportunities for companies established in two jurisdictions, inside and outside the EU, to have expenditure deducted in both jurisdictions, or deductible in one jurisdiction but not recognised as taxable income in the other.
The full EU Parliament 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 report will now go to the Council, where the amendment will require unanimous agreement to be adopted.
The Parliament’s 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 these corporations paid their fair share of taxes’.
The aim of the amendment is to prevent opportunities for companies established in two jurisdictions, inside and outside the EU, to have expenditure deducted in both jurisdictions, or deductible in one jurisdiction but not recognised as taxable income in the other.
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