The publication by the EU Commission of a proposal for a third anti-tax avoidance Directive (ATAD 3) targets the misuse of shell entities.
Day #23: ATAD 3
Where an entity is considered a shell for the purpose of the Directive, the denial of tax treaty benefits and the non-application of certain EU tax Directives may be one of the tax consequences. A prompt assessment of existing tax structures should be undertaken to anticipate potential corrective measures.
From a corporate standpoint, it could require to re-assess the structure and corporate governance of certain companies in terms of decision-making process and outsourcing.
In addition to such tax and corporate matters, please note that issues related to employment may arise from the ATAD 3, namely regarding the mandate agreements or employment agreements of the directors. We would be happy to assist with these employment aspects.
