Commission Tightens EU Corporate Tax Rules
The European Commission has moved to close loopholes in its Parent-Subsidy Directive, allegedly used by some companies to escape taxation.
Under the changes, firms will no longer be able to exploit disparities in the way that intra-group payments are taxed across the European Union (EU). The Commission hopes that the Directive will then be able to provide a level-playing field for “honest” businesses.
The Directive was originally designed to prevent same-group companies, based in different EU member states, from being taxed twice on the same income.
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