Statement: Fighting Tax Avoidance: Commissioner Šemeta welcomes Parliament vote on Parent-Subsidiary Directive

On 2 April 2014, the European Parliament gave strong backing to the Commission's proposal to revise the Parent-Subsidiary Directive. The Parent Subsidiary Directive is a key piece of corporate tax legislation, which aims to prevent double taxation of same group companies in Europe. However, loopholes in the Directive have been exploited by aggressive tax planners and have enabled some companies to escape corporate taxation. The Commission therefore proposed to tighten up the Directive in order to cut off specific opportunities for corporate tax avoidance. In particular, companies will no longer be able to exploit differences in the way intra-group payments are taxed across the EU to avoid paying any tax at all.

• Primary Source

ESO: Background information: Tackling Tax Avoidance: Commission tightens key EU corporate tax rules http://www.europeansources.info/record/press-release-tackling-tax-avoidance-commission-tightens-key-eu-corporate-tax-rules/

ESO: Background information: Clamping down on tax evasion and avoidance: Commission presents the way forward http://www.europeansources.info/record/press-release-clamping-down-on-tax-evasion-and-avoidance-commission-presents-the-way-forward/

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