CFE Opinion Statement on Evaluation of ATAD
FC 5/2024 – Evaluation of the EU Anti-Tax Avoidance Directive (ATAD)
Key points of the opinion statement:
- ATAD poses a significant compliance burden and implementation has resulted in increased complexity, particularly when layered on top of existing national rules. CFE’s primary remarks is the complexity of the EU’s anti-avoidance framework is potentially hindering the EU’s competitiveness and ease of doing business. CFE notes the urgent need to create a more coherent tax-avoidance structure and reduce complexity in EU tax rules.
- ATAD has been effective in establishing the EU’s anti-avoidance system and changing mentality, however its implementation has led to increased administrative burdens for businesses. The lack of comprehensive data makes it challenging to fully assess ATAD’s effectiveness.
- There is an urgent need to align ATAD with newer initiatives such as EU’s Directive on Minimum Tax (Pillar Two) and create a more coherent structure for EU tax rules. CFE notes the need for further simplification, to improve on the clarity of concepts and the need to implement definitions. CFE’s emphasises the need to “declutter” the EU’s anti-avoidance legislation (ATAD and partly DAC6), especially for companies in scope of Pillar Two, to reduce complexity and potential redundancies or duplication in reporting requirements.
