European Network | Webinar Unshell Directive Proposal

Whether SPVs have sufficient substance for various tax purposes is an area of concern to many taxpayers from multinational groups to private clients, including the investment funds industry. The proposal states that ‘while it is recognized that different activities may require a different level or type of resources, a common minimum level of resources would be expected under all circumstances’.

Is this proposal necessary from a policy perspective and does it favour third countries? Is this proposal adding an additional layer of complexity to the substance issue already raised by legislative initiatives such as the PPT, abuse of law, GAAR, or court decisions like the Danish cases? Is the proposal fully aligned with freedom of establishment, provision of services, etc.? Which are the practical implications of this EU Directive proposal?

To answer these and many other questions, partners from eight leading European law firms interacted with Mr. Savino Ruà, Head of International Tax sector at the European Commission project leader for Unshell Tax.