The Proposal for an EU Anti-Avoidance Directive: Some Preliminary Thoughts

On 28 January 2016 the European Commission made public a package of measures aimed to tackle tax avoidance and abusive practices in the European internal market. The package includes a detailed proposal for a new EU Anti-Avoidance Directive addressing six main issues: deductibility of interest; exit taxation; switch-over clause; General Anti-Avoidance Rule (GAAR); Controlled Foreign Corporation (CFC) rules; and hybrid mismatches. This paper provides a critical analysis of the Proposal for a Directive taking into consideration some of the implications of its implementation at stake. The final aim of this work is to contribute with some elements that can improve the future debate on these matters.