Strategizing Multinational Tax Risks

The Council of the EU published its latest report, summarized and referenced herein:

• The US complies with all the EU Member States re: Automatic Exchange of Information (AEOI) due to its double tax treaty network, FATCA, etc.
• Guidance on notional interest deductions who wish to adopt a similar method, as not harmful by the Group (no safe harbor; general criteria)
• Delisting certain non-cooperative jurisdictions
• Monitoring implementation of commitments by jurisdictions
• Identification of new preferential regimes
• Further defensive measures for non-cooperative jurisdictions
• Treatment of partnerships re: substance
• The way forward; future monitoring, etc.

This is important guidance, as it provides transparency into the tax measures adopted, or not adopted, by various jurisdictions.  It also provides potential measures to incentivize non-cooperative jurisdictions.

Click to access 2019G_005707-19Gbl_EU%20Code%20of%20Conduct%20Group%20issues%20update%20report%20-%20new%20guidance.pdf

https://data.consilium.europa.eu/doc/document/ST-14114-2019-INIT/en/pdf

http://data.consilium.europa.eu/doc/document/ST-12284-2019-REV-1/en/pdf