On Tuesday 21 February, the Council of the European Union reached agreement on the finalised text of the Directive extending the scope of the original Anti-Tax Avoidance Directive (the “ATAD”). Below is a CFE Tax Update related to these developments.
On 19 December the European Commission published its eagerly awaited final decision that Ireland granted Apple illegal State aid by virtue of the terms of two Advanced Pricing Arrangements (APAs) with two Apple entities in 1991 and 2007.
The Commission issued its preliminary decision on 30 August 2016 after a three-year long investigation into Apple’s tax arrangements in Ireland following comments made by Apple executives before a Senate Committee hearing in Washington in 2013.
The EU´s fight against tax evasion and avoidance must not touch on the taxpayers´ fundamental rights, must keep their compliance effort reasonable, should not loose sight of the original aim to eliminate double taxation and must not endanger the EU´s competitiveness. The EU should respect the role of tax advisers in ensuring compliance and defending taxpayer´s rights.
On 24 November 2016 more than 100 jurisdictions concluded negotiations on a multilateral instrument which will amend the application of more than 3000 existing bi-lateral tax treaties in conformity with the conclusions and principles of the BEPS project.
For a detailed summary of the MLI please the CFE Fiscal Committee Tax Update below.