EU Directives against agressive tax planning (DAC6) and tax avoidance (ATAD3) - Challenges for holding companies and their managers
The Webinar will address the challenges stemming from EU Directives (DAC6 - ATAD3) that holding companies are facing of will face in the future. We will focus on the impacts of these EU Directive on Luxembourg holding companies, through the delineation of key concepts and concrete illustrative examples. The webinar is ideal for independent managers as well as trust and fiduciary companies who want to anticipate the new challenges in relation with aggressive tax planning, economic substance and automatic exchange of information.
• What are the DAC6 hallmarks to watch for Luxembourg holding companies?
• How should the most relevant hallmarks for holding companies be interpreted (e.g. Hallmark B2 (conversion of income), Hallmark C1 (tax deductible payments))?
• Temporal aspects of DAC6 - How are grandfathered loans or debt instruments possibly exposed to DAC6?
• Illustrative examples of hallmarks relevant for holding companies;
• How are domiciliation and fiduciary companies exposed to being a secondary intermediary? How would they typically render “aid, assistance or advice” within the meaning of DAC6?
• How should the “knowledge test” be conducted for a secondary intermediary, for a fiduciary and trust company?
• New DAC6 obligations in relation with the annual corporate income tax returns.
2/ ATAD III (EU Unshell Directive), the new challenge for Luxembourg holding companies - How are trust and fiduciary companies exposed?
• Key concepts of the new Anti-tax avoidance Directive (“Unshell”);
• New mandatory disclosure obligations in relation with economic substance;
• How to assess the “Gateways”, i.e. the new test to determine companies at risk of being shell companies;
• What are the new minimum economic substance requirements for holding companies?
• The breadth of the new automatic exchange of information on economic substance. What information would be exchanged, with who and under which conditions?
• What are the risks in case of insufficient economic substance? What are the penalties for non-reporting?
• What will be the role of trust and fiduciary companies in anticipating these changes?
Olivier dal Farra is a counsel in the tax group of Baker McKenzie's Luxembourg office. His practice is focused on corporate tax and international tax planning. He has more than 10 years of experience in Luxembourg. Before joining Baker McKenzie in 2019, Olivier worked as a senior tax manager for an audit firm in Luxembourg and in several international law firms in Paris and Luxembourg. He also worked at the Court of Justice of the European Union.
Olivier’s practice focuses on international tax planning and tax advice in connection with M&A transaction and reorganization. Olivier routinely assists international clients, including foreign asset managers and private equity firms in tax structuring strategies concerning their debt or equity investments. He also advises financial institutions (bank/insurance companies) and wealthy families on tax planning and international tax compliance aspects. He has also developed an in-depth expertise on matters in relation with the EU Directive on Mandatory Disclosure Reporting (DAC6), assisting both intermediaries and taxpayers to detect and meet their DAC6 obligations.