- In addition to the Unshell directive proposal (EU focus), the EC launched an initiative to tackle the role of enablers in facilitating tax evasion or aggressive tax planning, by setting up structures in non-EU countries (known as Securing the Activity Framework of Enablers – SAFE), with three potential policy options:
- Option 1 - all enablers would be required to carry out dedicated due diligence procedures.
- Option 2 - the prohibition of enabling tax evasion and aggressive tax planning, combined with due diligence procedures and the requirement for enablers to register in the EU.
- Option 3 - code of conduct for all enablers.
- An additional new measure (regardless of the chosen option) could require EU taxpayers (both individuals and legal persons) to declare in their annual tax returns any participation above 25% in shares, voting rights, ownership interest, bearer shareholdings or control via other means in a non-listed company located outside of the EU.
- Given the non-EU focus, this could potentially be relevant for some UK groups, although the details of the rules are still under discussion.
- Timing: the EC public consultation and call for evidence ran until 12 October 2022. The directive proposal is expected to be released after the vote on the Unshell proposal (the timing of the latter remains unclear). At this stage it is not clear when any new rules might apply. Due to the upcoming EU elections in 2024, it is possible that the proposal may only be released in 2025.
Resources (click to open)
- Information note on the Commission’s proposal for a directive Securing the activity framework of enablers (SAFE) (paper for the purposes of the meeting of the members of the Platform for tax good governance on 13th September 2022)
- Tax evasion & aggressive tax planning in the EU – tackling the role of enablers (European Commission, July 2022)
- Commission launches initiative to tackle role of enablers in aggressive tax planning (Deloitte tax@hand, July 2022)
