On 28 January 2016, the European Commission (EC) presented its Anti-Tax Avoidance Package (ATAP) that contains proposed measures to planning, boost tax transparency and create a level playing field for all businesses in the European Union.
ATAP consists of seven parts:
- legislative proposals for an Anti-Tax Avoidance Directive (draft ATA Directive);
- legislative proposals for an amendment to Directive 2011/16/EU to coordinate implementation of G20/OECD BEPS country-by-country reporting (CBCR) requirements;
- a proposed 'EC Recommendation' to Member States on the implementation of G20/OECD BEPS recommendations on tax treaty abuse and on permanent establishments;
- a general policy 'Communication' on the ATAP and the proposed way forward;
- a general policy 'Communication' on an EU external strategy for effective taxation;
- an EC Staff Working Document; and
- a study on Aggressive Tax Planning.
- The EC's new proposals to crack down on multinational companies avoiding paying tax in countries they earn their profits won't be enough to fight tax havens, according to NGOs. http://www.euractiv.com/section/euro-finance/news/eu-s-anti-tax-avoidance-package-likely-to-fail-say-ngos/
- Recommendations on amending tax treaties: ° ensure implementation of new PE definition° advice on how to revise tax treaties against abuse° focus on how to do it in EU law compliant way
- The proposal for an ATA Directive could be seen as a first step toward harmonization in the context of the fight against base erosion and profit shifting. The EC continues to favour the adoption of the CCCTB, despite its rejection by many member states.