KPMG comments on European Commission consultation on ATAD
Evaluation of the Anti-Tax Avoidance Directive
Share
September 19, 2024
KPMG member firms in the EU on September 11, 2024, submitted a memo with comments in response to the European Commission’s call for evidence for the evaluation of the Anti-Tax Avoidance Directive (ATAD).
Key points in the KPMG comments include:
- The interaction of ATAD with the EU global minimum tax directive creates an additional level of complexity and a risk of double taxation, which needs to be addressed at EU level. In particular, ATAD needs to be amended to exempt from controlled foreign company (CFC) regimes those groups that are in scope of Pillar Two.
- There are a number of issues in need of further clarity and certainty, such as the treatment of capitalized interest costs for the purposes of the interest limitation rules group taxation in the context of the anti-hybrid rules.
- The adequacy of the deductibility threshold and de minimis rule and the scope of exclusions for long-term public infrastructure projects need to be revisited to better reflect the current economic environment and international environment.
Read a September 2024 report prepared by KPMG’s EU Tax Centre