ATAD 3 on the horizon (“Unshell Directive”): What will be the impact on Luxembourg?

DESCRIPTION

On 22 December 2021, the EU Commission released a proposal for a Council Directive laying down rules to prevent the misuse of shell entities for tax purposes. The initiative was triggered by the impression on the part of the Commission that legal entities with no or only minimal substance, performing no or very little economic activity, continue to pose a risk of being used for aggressive tax planning structures.

The Draft Directive follows the Commission’s Communication on Business Taxation for the 21st century in the EU which is meant to involve a number of other policy initiatives promoted in the short- and long-term by the Commission. Meanwhile, the international tax landscape has undergone a dramatic transformation over the last few years.  

However, what would be a shell entity within the meaning of the Draft Directive? Could the Draft Directive establish higher substance requirements than applicable under existing anti-abuse legislation? How to manage reporting obligations under the Draft Directive in practice? And, what will be the impact on Luxembourg? All these questions will be addressed during this webinar.

AGENDA

1. Background

2. Necessity and legal basis of the proposed Directive

    o Substance in international taxation

    o Existing anti-abuse and reporting obligations

    o Considering the legal basis of this initiative

3. Analysing the proposed reporting regime

    o Determination of shell entities (a series of tests)

    o Tax treatment of shell entities

    o Exchange of information

    o Penalties

    o Requests for tax audits

4. How to manage (reporting) obligations in practice

5. Practical case studies

More information and registration details to follow soon.

SPEAKER

Oliver R. Hoor is a Partner in the International and Corporate Tax department at ATOZ.

A tax professional since 2003, Oliver has experience in Luxembourg and international taxation with a focus on alternative Investments (private equity, real estate, sovereign wealth funds, hedge funds), mergers & acquisitions and multinational groups. Oliver advises clients on all direct tax aspects regarding deal structuring, maintenance, reorganisations and exit planning. He is further Head of Transfer Pricing and the German Desk.