New anti-abuse clause to the EU Parent-Subsidiary Directive

CONTENT: 1. Introduction – 2. The previous amendments to the Parent-Subsidiary Directive 2011/96/EU – 3. The Anti-Abuse Clause and “de minimis” rule – 4. Conclusions
1. Introduction
On 27 January 2015, the EU Council has formally adoptedi the latest amendment to the Parent-Subsidiary Directive 2011/96/EUii (hereinafter PSD) to prevent, on behalf of a new anti-abuse clause, tax avoidance and aggressive tax planning by corporate groups. It is aimed at helping governments tackle non-genuine arrangements that have been put into place to obtain tax advantages, without reflecting economic reality.
An earlier amendment was agreed at the Council’s meeting on 20 June 2014 and adopted on 8 July, to prevent double non-taxation (and unintended tax benefits for corporate groups) of distributed profits deriving from hybrid loan arrangements by neutralizing the effects that may arise due to different qualifications of such loans between EU Member States.
Member States have until 31 December 2015 to introduce an anti-abuse rule into their national law, for the transposition of the July 2014 amendments tackling hybrid loan mismatches.