Regulations get Tighter

By in

20.01The European Commission has drafted reforms on the tax directive in order reduce tax avoidance. The initial directive was designed to prevent double taxation upon the same- group of companies across different EU member states, however in recent years this directive has been exploited by companies to avoid paying taxes. According to the new reforms members of the European state will be able to ignore any legal structuring deemed to purposely be in place to avoid paying tax and then tax on local earnings, meaning that certain types of tax planning arrangements will shortly no longer be eligible for tax exemption.