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
- 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.