2022-04-06-KPMG_s_EU_Tax_Centre-Euro_Tax_Flash_from_KPMG_s_EU_Tax_Centre_3页_347kb

Background

KPMG member firms in the EU submitted a response to the European Commission's April 5, 2022, public consultation on the proposed "Unshell" Directive aimed at preventing tax misuse through shell entities. This follows a previous August 2021 consultation. KPMG believes the issue merits further consideration but should be assessed within the context of existing EU tax rules, such as the ATAD and MDR.

KPMG's Contribution

KPMG advocates for monitoring and evaluating current measures before implementing new shell-specific rules. Concerns raised include ensuring alignment with EU Court of Justice case law, maintaining proportionality to minimize administrative burdens and enable targeted tax authority investigations. Practical issues identified involve resource strain, potential negative impacts on EU Member State competitiveness, and unclear rules due to absence of definitions (e.g., outsourcing gateway test, substance indicators). Additionally, KPMG calls for dispute resolution procedures and a revision of penalty provisions to allow Member States flexibility.

Next Steps

The proposal requires Member States to transpose rules into national law by June 30, 2023, with application starting January 1, 2024. The legislative process necessitates unanimous Council approval, followed by a formal opinion from the European Parliament.

ETC Comment

The directive was introduced alongside the Minimum Tax Directive, which has priority but may delay discussions on the "Unshell" proposal. KPMG anticipates increased discussion as technical work on the minimum tax directive concludes, with potential changes based on Member State feedback.