The consultation launched on 6 July to collect views from the public and stakeholders on this issue includes a request for feedback on a call for evidence impact assessment document and a broader stakeholder questionnaire.
Taken together, the two strands of the consultation are designed to assess the magnitude of the problem, the need for EU action and the potential policy responses.
The following three policy options are being considered:
- a requirement for all enablers to carry out dedicated due diligence procedures;
- a prohibition to facilitate tax evasion and aggressive tax planning combined with due diligence procedures and a requirement for enablers to register in the EU; and
- a code of conduct for all enablers.
Regardless of the policy option chosen, the consultation documents indicate that a new measure to boost transparency and combat possible tax evasion and aggressive tax planning related to EU investments abroad could be developed. This would require EU taxpayers (both individuals and legal persons) to declare in their annual tax returns any participation above 25% of shares, voting rights, ownership interest, bearer shareholdings or control via other means in a non-listed company located outside of the EU.
Any option that is chosen is designed to sit alongside other initiatives such as:
- DAC 6, which involves the reporting and exchange of information on cross-border arrangements; and
- the Anti-Tax Avoidance Directive (ATAD).
The consultation is open until 12 October 2022.
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