Tax transparency
Key policy areas
19 Nov 2019
In recent years, tax transparency has become a key issue for the EU and more broadly for international policymakers. There are several policy initiatives which are of particular relevance from a private equity perspective.
DAC 6
In May 2018, EU member states adopted an amendment to the Directive on Administrative Cooperation (DAC6). This amendment makes it mandatory for intermediaries (or in some cases taxpayers) to report cross-border transactions and arrangements to tax authorities and requires the subsequent automatic exchange of information between EU member states involved in those transactions.
How does it affect private equity?
Additional reporting requirements are likely to increase the administrative burden, potentially both at the fund and portfolio company level, in particular where the reporting requirement falls on the taxpayer due to professional privilege. Private equity by its nature operates across borders. Consideration needs to be given to whether certain transactions – or certain advice in the case of service providers – qualifies as reportable or not. At the same time, some member states have introduced significant fines in case of non-compliance.
Tax transparency library
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Feedback to EC Roadmap on Withholding taxes
Positions & consultation responses
26 Oct 2021
Response to European Commission consultation on Debt Equity Bias Reduction Allowance (DEBRA)
Positions & consultation responses
07 Oct 2021
Response to European Commission Consultation on fighting the use of shell entities and arrangements for tax purposes
Positions & consultation responses
27 Aug 2021
Feedback to EC Roadmap on DEBRA
Positions & consultation responses
12 Jul 2021
Response to European Commission Consultation on VAT rules for financial services
Positions & consultation responses
03 May 2021
Feedback to EC Roadmap on VAT and financial services
Positions & consultation responses
22 Nov 2020
Joint industry letter on DAC 6 deferral - consistent application - JUNE 2020
Positions & consultation responses
29 Jun 2020
Joint FS industry letter to the EC on DAC 6 deferral
Positions & consultation responses
24 Apr 2020
Invest Europe letter to EC on deferral of DAC 6 application deadline
Positions & consultation responses
31 Mar 2020
Global PE industry response to the OECD consultation – Global Anti-Base Erosion Proposal (“GloBE”) (Pillar Two)
Positions & consultation responses
02 Dec 2019
PAE-Invest Europe response to the OECD Pillar One consultation
Positions & consultation responses
11 Nov 2019
2018 Invest Europe Tax Benchmark Study
Member guides
14 Jun 2018
The Use of Holding Companies and Choice of Jurisdictions by the Private Equity Industry
Member guides
04 May 2017
Response to Capital Markets Union Mid-Term Consultation
Positions & consultation responses
17 Mar 2017
Response to European Commission Call for Evidence on EU Regulatory Framework for Financial Services
Positions & consultation responses
31 Jan 2016
