Tax havens and controlled foreign corporations in the European Union | 2017

Author(s) Kam Mei Kei
Advisor(s) João Sérgio Ribeiro
Year 2017

Synopsis The subject of tax avoidance and evasion by use of tax havens has been addressed in the Organization for Economic Cooperation and Development (OECD) and G-20 industrialized nation for many years. However, taxpayers can always find the loopholes to minimize the tax payments prior to when new regulation comes out. After the Panama Paper leaks, the European Union has emphasized that it will strongly combat the tax dodgers and a new tax regulation will be imminent. On 12 July 2016, the Anti-Tax-Avoidance Directive finally reached an agreement, and CFC rules are one of the five particular aspects that were highlighted in the Directive. CFC rules are the vital tool for many countries for preventing the allocation of passive income to low-taxed jurisdictions. This paper will evaluate whether the current CFC rules are efficient at EU level to combat the multinational companies’ evasion of tax payments and the future of the tax havens.

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2018-07-12T15:57:04+00:00