EU finance ministers close 'double non-taxation' loophole


On 8 July 2014, economic and financial affairs ministers met to discuss the Italian presidency's work programme for financial affairs and issued a statement on economic growth and reforms.

The Council adopted an amendment to EU tax rules that will prevent the double non-taxation of dividends distributed within corporate groups deriving from hybrid loan arrangements.

This closed a loophole that until now has allowed corporate groups to exploit mismatches between national tax rules so as to avoid paying taxes on some types of profits distributed within the group.

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