Last week the European Parliament’s Economic and Monetary Affairs (ECON) Committee considered a draft report with proposed changes to the European Commission’s draft Directive on ensuring a global minimum level of taxation for multinational groups. The draft report contains a range of proposed amendments to the draft Directive, including changes to the qualified domestic top-up tax and the introduction of an anti-avoidance rule that would disregard arrangements that have been put in place for the essential purpose of obtaining a tax advantage.
The draft report also proposes to introduce a clause into the proposed Directive inviting the Commission to review the application of the Directive five years after its entry into force. Agreement on the draft report was not reached at the ECON Committee meeting and it is anticipated that amendments will be made to the draft report before it is voted on by the ECON Committee.