Insurance Europe welcomes the European Commission’s call for evidence as an opportunity to provide feedback on the upcoming evaluation of the Anti-tax Avoidance Directive (ATAD).
The European (re)insurance industry is concerned about the inefficiencies and high compliance costs arising from the overlap of the ATAD with the Minimum Corporate Taxation Directive and the sixth version of the EU Directive on administrative cooperation (DAC6).
European (re)insurers recommend either repealing ATAD entirely or, if that is not feasible, amending certain ATAD provisions while aligning others with the Minimum Corporate Taxation Directive rules.
Among those provisions that should be amended are the controlled foreign company rules, interest limitation rules, and rules related to hybrid mismatches.
Similar considerations apply to DAC6. With the introduction of the Minimum Corporate Taxation Directive rules, the likelihood of abusive cross-border arrangements is reduced.
The industry believes these changes would simplify the tax landscape, reduce overlaps, and eliminate unnecessary compliance burdens, thereby creating a more efficient and competitive business environment for European companies.
Read Insurance Europe's response.
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