ATAD 3

On 22 December 2021, the European Commission published a proposal for a Directive laying down rules to prevent the misuse of shell entities for tax purposes. With this proposal, the European Commission intends to counter situations where taxpayers evade or avoid taxes by misusing entities that have no minimal substance and do not perform any actual economic activity (so-called “shell entities”). To meet this objective, the proposal contains a common set of rules, including minimum substance indicators, for the identification of shell entities and their tax treatment. A reporting obligation and an automatic exchange of information must furthermore ensure that Member States have information readily available on the substance level of companies in scope that meet certain criteria. Feedback on the proposal to the European Commission was open until 6 April 2022. A separate EU Directive dealing with a shell entity in a third country is expected in the course of 2022.

How we can help

Our experts are closely monitoring all developments in this area. Our team can support you in reviewing the potential impact of new developments on your structure and/or assessing potential restructuring options to ensure your structure is substance compliant. We can also help in consultations with tax authorities, cross-border dispute resolution, tax audits and, if necessary, assistance in court.

Tax Developments Seminar
Tax Developments Seminar
During the Virtual 7th Annual International Tax Developments Seminar, several Loyens & Loeff tax experts updated the participants on the latest international tax developments. One of the topics that was discussed were some withholding tax disputes after the Danish cases.
Webinars ATAD3
Webinars ATAD3
We hosted webinars about ATAD3 on 16 and 17 February 2022 and on 1 March 2022. Please contact one of our team members mentioned in below Q&A, if you would like to receive the slides of the webinars. Since various questions were raised during these webinars, we prepared the top 10 questions and answers.