E.U. Commission Publishes Draft Directive to Remove Tax Driven Debt-Equity Bias
Author: Robert E. Gaut.; Emma C. McDonnell.
Source: Volume 39, Number 04, Summer 2022 , pp.45-48(4)
< previous article |next article > |return to table of contents
Abstract:
As part of its strategy on business taxation, the E.U. Commission has released the draft text for a proposal to address the bias between debt and equity funding for corporate income tax purposes. This draft proposal aims to introduce tax fairness arrangements which seek to encourage businesses to finance investments with equity rather than debt with a range of measures including a debt-equity bias reduction allowance.Keywords: European Commission, tax policy, international tax, debt/equity, allowance on equity, interest deduction limitations
Affiliations:
1: Proskauer; 2: Proskauer.