Rethinking anti-tax avoidance measures in the European Union

This study examines the evolving landscape of anti-tax avoidance measures in the European Union (EU), focusing on the interplay between the Anti-Tax Avoidance Directive (ATAD), the EU Blacklist Code of Conduct on Business Taxation, various unilateral regulations, and the global minimum tax. Drawing on a comprehensive survey of local tax experts, we investigate how Member States have implemented the five core ATAD measures - interest barrier rules, exit taxation, controlled foreign company (CFC) rules, hybrid mismatch provisions, and general anti-abuse rules (GAAR) - as well as the EU Blacklist and additional national provisions such as royalty deduction limitations. The findings reveal a generally consistent adoption of ATAD rules, albeit with notable variation in strictness and scope across Member States. Furthermore, the study evaluates the interplay with the newly introduced global minimum tax. While this global measure primarily targets rate-based profit shifting, our analysis indicates that it may reinforce or partially overlap the EU's other directives - especially for countries that have already implemented extensive anti-tax avoidance legislation. We conclude by highlighting areas where policy refinements could enhance coherence - reducing complexity, avoiding double regulation, and strengthening the overall framework for combating tax avoidance within the EU.