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21 June 2016

EBF: Anti-tax avoidance: EU member states need to align actions with OECD

European banks, actively supporting international measures to fight tax evasion, broadly welcome new European Union measures against corporate tax avoidance on which finance ministers reached agreement.

The  European  Banking  Federation (EBF) underlines  the importance  for  EU  Member  States  to  aligning  these  measures  with  the  international  actions that  are  being  developed in  the  context  of  the  Organisation  for  Economic  Cooperation  and Development (OECD).

The EBF fully supports a coordinated and coherent EU implementation of the OECD Action Plan on Base Erosion  and Profit Shifting  (BEPS)  which  aims  to  tax  business  profits  where  value  is created, however, the Anti-Tax Avoidance Directive (ATAD) which EU Finance Ministers have now agreed risks creating distortions because it departs from the BEPS recommendations made by the OECD.

European banks play a central role in the implementation of standards and measures that fight tax evasion and prevent double non-taxation and double taxation.

The EBF is particularly concerned by the limit on interest deductibility which EU ministers adopted before the OECD has fully considered how this measure should be applied to banking groups.

The EU’s anti-tax avoidance directive also does not provide proper dispute resolution mechanisms which are designed to avoid unintended consequences such as double taxation.

Given that this new legislation may have an important impact on the investment climate in the EU, the EBF would support a thorough impact assessment at EU level.

Press release


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