Ashley Greenbank and Sarah Ling (Macfarlanes) examine what the tax consequences of ATAD 3 will be in practice for four structures involving EU shell companies.
ATAD 3 (or the Unshell Directive) the European Commission’s Directive designed to tackle the use of EU based shell entities (an EU Shell) that do not meet a minimum substance threshold is intended to come into force from 1 January 2024. Many international corporate groups that use European holding companies will therefore be grappling with whether any of their companies are EU shells and if so what to do about it.
Such groups might consider removing problematic holding companies using different jurisdictions or taking steps to bolster substance in particular jurisdictions in order to stay above the new minimum threshold. Before doing so groups should examine their structures not just in light of the minimum substance requirements laid...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Ashley Greenbank and Sarah Ling (Macfarlanes) examine what the tax consequences of ATAD 3 will be in practice for four structures involving EU shell companies.
ATAD 3 (or the Unshell Directive) the European Commission’s Directive designed to tackle the use of EU based shell entities (an EU Shell) that do not meet a minimum substance threshold is intended to come into force from 1 January 2024. Many international corporate groups that use European holding companies will therefore be grappling with whether any of their companies are EU shells and if so what to do about it.
Such groups might consider removing problematic holding companies using different jurisdictions or taking steps to bolster substance in particular jurisdictions in order to stay above the new minimum threshold. Before doing so groups should examine their structures not just in light of the minimum substance requirements laid...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
