EU: Parliament closes loopholes used by multinationals to avoid paying tax
Author: European Parliament, Published on: 27 April 2017
MEPs amended the EU’s anti-tax avoidance directive to prevent multinationals taking advantage of mismatches between EU and third countries’ tax rules to reduce their tax bills... If EU ministers back these amendments, corporations established in two jurisdictions (inside and outside the EU) for example, will no longer be able to have the same expenditure deducted from tax in both jurisdictions. MEPs also want to put an end to the practice of having a payment recognised as tax deductible in one jurisdiction but not recognised as taxable income in the other. The report now goes to the Council for their consideration and final approval.