Taxation - Parent subsidiary directive

Key points:

The EESC

• welcomes the proposal for a review of the Parent-Subsidiary Directive, and considers that it is a major step forward in implementing the action plan to strengthen the fight against tax fraud and tax evasion;

• endorses the Commission proposal aiming to implement a general anti-abuse rule (GAAR);

• supports the effort to curb the use of hybrid financial instruments enabling cross border groups to obtain tax advantages which undermine competition within the single market;

• recommends that when implementing this directive, Member States take account of the Commission's recommendation on aggressive tax planning as well as the interpretation of the European Court of Justice;

• recommends that the Commission draw up a recommendation which will help the Member States ensure that the transposition of the directive is legally correct;
• asks that Member States should adhere to very clear legal definitions in order to ensure that the directive is implemented correctly, without creating complicated situations for businesses and tax administrations.