Directive amended to cover non-EU countries.
The Council of the EU has adopted an amendment to the Anti-Tax Avoidance Directive extending the hybrid mismatch rules to cover arrangements with non-EU countries from January 2020.
‘Our aim is to tackle one of the main practices that multinational companies have devised to reduce their tax bills ’ said Edward Scicluna minister for finance of Malta which holds the council presidency. ‘The directive adds to the rules we adopted last year to tackle the most common forms of tax avoidance. It will also ensure implementation of the Organisation for Economic Co-operation and Development’s recommendations.’
The directive was agreed in July 2016 and included rules to prevent hybrid mismatches between EU member states. The latest amendment will stop companies exploiting the mismatches between member states’ and non-EU countries’ tax systems to avoid paying tax in either country or to obtain more tax relief against profits than they are...
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