Commission recommendation 2012/772/EU of 6 December 2012 on aggressive tax planning ()
DESCRIPTION: "Euopean Legal Act on aggressive tax planning which is one aspect of a detailed and complex Commission action plan designed to combat tax evasion and tax fraud. The action plan sets out practical ways to improve administrative cooperation between EU countries, fight abuse and double-non taxation, and tackle issues related to tax havens and tax-related crimes. "
eira:ABBeira:Non-bindingInstrumentRequirement
dct:modified2023-07-26
dct:spatialEU
dct:identifierhttp://data.europa.eu/eli/reco/2012/772/oj
dct:titleCommission recommendation 2012/772/EU of 6 December 2012 on aggressive tax planning
dct:descriptionThis recommendation by the European Commission aims to address the issue of aggressive tax planning, which is a practice where taxpayers reduce their tax liability through technically legal methods that are against the spirit of the law. The recommendation provides guidance on how to counter such practices, particularly by encouraging Member States to reinforce their double tax conventions and to adopt a common general anti-abuse rule.
dct:publisherEUR-Lex
dct:sourcehttps://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32012H0772
skos:exampleFor instance, if a company based in a Member State uses artificial arrangements to shift profits to a low-tax jurisdiction, under the guidance of this recommendation, the Member State could ignore these arrangements and tax the company based on the actual economic substance of the transactions. Similarly, if a company tries to exploit mismatches between two tax systems to avoid taxation, the Member States could use their double tax conventions to ensure that the company is taxed appropriately.
eira:concepteira:SolutionBuildingBlock
skos:noteThe recommendation suggests that Member States should adopt a general anti-abuse rule that would allow them to ignore artificial arrangements carried out for tax avoidance purposes and to tax based on the actual economic substance. It also encourages Member States to reinforce their double tax conventions to prevent situations of no or low taxation due to aggressive tax planning strategies.
eira:viewLV-Binding Power and Jurisdiction