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European Union Directive (Amendment) (No. 2) Regulations, 2015

The EU Directive regulations relating to common system of taxation applicable in the

case of parent companies and subsidiaries of different member states has been amended

as follows:

- Member States shall not grant the benefits as outlined in the directive to an

arrangement or a series of arrangements which, having been put into place for the

main purpose or one of the main purposes of obtaining a tax advantage that

defeats the object or purpose of the directive, are not genuine, having regard to all

relevant facts and circumstances. An arrangement may comprise more than one

step or part.

- An arrangement or a series of arrangements shall be regarded as not genuine to

the extent that they are not put into place for valid commercial reasons which

reflect economic reality.

- Member States are not precluded from the application of domestic or agreement-

based provisions required for the prevention of tax evasion, tax fraud or abuse.

- As from 31st December 2015, EU Council Directive 2015/121/EU amending

Directive 2011/96/EU on the common system of taxation applicable in the case of

parent companies and subsidiaries of different Member States shall have effect in

relation to the Income Tax Act.