Автор: Світлана Рудюк, WEB-3 and tax lawyer
On 22 December 2021, the European Commission released a legislative proposal for a Council Directive (“Draft ATAD 3”) established rules to prevent the misuse of shell entities for tax purposes, and amended Directive 2011/16/EU (“ATAD 1”).
The final adoption of this regulation was planned for December 2023. But, several EU member states didn’t agree with the text.
The criteria for presence, the tax consequences for the shell companies, the obligations of companies to provide information reporting, and the list of information for exchange between EU states are the questions regarding which the members do not have the same approach.
The EU Council periodically reviewed the project of the ATAD 3 and the states proposed amendments to ATAD3, but up to now the ATAD 3 is not adopted.
It means that the general rules related to the prevention of tax erosion will be regulated by the provisions of the ATAD 1, 2 the provisions of the Plan BEPS and the provisions of the local legislation of the member states.
Above Mentioned fact continues to create potential opportunities for avoiding the execution of the tax responsibilities for the companies.