CFE Opinion Statements on Tax Omnibus package and DAC Recast
Opinion Statement FC 4/2026 on the European Commission Proposal for a “Direct Taxation Omnibus” COM(2026) 560 and Opinion Statement PAC 7/2026 on the European Commission Proposal for a Recast of the EU Directive on Administrative Cooperation COM(2026) 308
CFE Tax Advisers Europe has published two Opinion Statements responding to the European Commission’s proposals for a Direct Taxation Omnibus Directive and a Recast of the Directive on Administrative Cooperation (DAC).
Opinion Statement on the Direct Taxation Omnibus
Amongst the principal observations in the Statement are:
Withholding tax simplification – CFE welcomes the removal of minimum holding requirements under the Interest and Royalties Directive and Parent-Subsidiary Directive, together with the move towards taxpayer self-assessment, whilst calling for greater legal certainty for paying agents and a shorter transition period before the new procedures take effect.
Research & Development allowance – CFE supports the introduction of an EU-wide minimum standard for the immediate deductibility of qualifying R&D expenditure, whilst encouraging broader recognition of innovation costs and further consideration of its interaction with the Pillar Two framework.
ATAD reforms – CFE welcomes the proposed simplification of the interest limitation and Controlled Foreign Company rules, whilst recommending clearer definitions, appropriate transition arrangements and greater certainty regarding references to the OECD framework.
General Anti-Abuse Rule – CFE raises concerns that extending the GAAR to Pillar Two top-up taxes could undermine the internationally agreed GloBE framework, create legal uncertainty and increase the risk of double taxation.
Dispute Resolution Mechanisms – CFE supports targeted improvements to the EU dispute resolution framework to enhance tax certainty and the effective resolution of cross-border disputes.
Opinion Statement on the DAC Recast
The Statement supports a number of targeted measures to simplify the reporting framework for cross-border arrangements, including:
DAC6 simplification – CFE supports the removal of the Category A hallmarks, the introduction of a Pillar Two reporting carve-out and the extension of the reporting deadline from 30 to 90 days.
Main Benefit Test – CFE calls for clear and stable guidance to ensure consistent application across Member States.
Legal professional privilege – CFE urges full alignment with recent CJEU case law, whilst reiterating its preference for a taxpayer-default reporting model and equal protection for legal advice and legal representation following the F SCS judgment.
Fundamental rights – CFE emphasises that administrative cooperation should continue to be underpinned by respect for fundamental rights, legal certainty and the rule of law.
Operational certainty – CFE calls for further clarification of the conditions governing the Pillar Two carve-out to ensure consistent implementation across the European Union.
In its submission, CFE welcomes the OECD’s objective of improving clarity and consistency in the transfer pricing treatment of intra-group services, whilst emphasising that the revised guidance should remain proportionate, practical and supportive of tax certainty. While welcoming the proposed documentation provisions, CFE stresses that they should not evolve into a de facto mandatory checklist or create disproportionate compliance burdens, particularly for routine and recurring intra-group services
In its submission, CFE welcomes the OECD’s objective of improving clarity and consistency in the transfer pricing treatment of intra-group services, whilst emphasising that the revised guidance should remain proportionate, practical and supportive of tax certainty. While welcoming the proposed documentation provisions, CFE stresses that they should not evolve into a de facto mandatory checklist or create disproportionate compliance burdens, particularly for routine and recurring intra-group services
In its submission, CFE welcomes the OECD’s objective of improving clarity and consistency in the transfer pricing treatment of intra-group services, whilst emphasising that the revised guidance should remain proportionate, practical and supportive of tax certainty. While welcoming the proposed documentation provisions, CFE stresses that they should not evolve into a de facto mandatory checklist or create disproportionate compliance burdens, particularly for routine and recurring intra-group services
