The European Council has officially dropped the draft ATAD 3 Directive, which aimed to curb the misuse of shell entities for tax purposes, a significant win for the industry.
Over the past 3 years, INREV and other associations have shared their objections to the proposal. If implemented, the directive could have led to the loss of tax benefits for asset-holding companies operating within tax efficient structures.
Ultimately, EU member states were unable to reach consensus on key elements of the directive, leading to its withdrawal.
For more background, visit our dedicated page on ATAD.