The anti-avoidance directive (II). Controlled foreign company rules

Abstract

The present paper is mainly aimed at describing controlled foreign company rules contained in articles 7 and 8 of the Council Directive (EU) 2016/1164 of 12 July 2016. Harmonization in such a sensitive issue is a great political success for the Council. But this success is more apparent than real, as affected revenues have been loosely defined. In addition, there is an analysis of an array of requested amendments that should be done in order to transpose them into corporate and personal income tax laws. Lastly, a final consideration is done with respect of collective investment institutions shareholders which, according to the author, should be aligned with controlled foreign company rules.