On 22 December 2021, the European Commission presented a new proposal to fight against the misuse of shell entities for improper tax purposes. The proposed new measures will establish transparency standards around the use of shell entities, so that their abuse can more easily be detected by tax authorities. Using a number of objective indicators related to income, staff and premises, the proposal will help national tax authorities detect entities that exist merely on paper.

Once adopted by Member States, the proposal should come into force as of 1 January 2024.

Further information can be found here.

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