CFE Tax Advisers Europe submitted an Opinion Statement on the European Commission’s Call for Evidence on the Omnibus on Taxation, which aims to streamline and modernise key EU corporate tax directives, including the Anti-Tax Avoidance Directive (ATAD). CFE welcomes the Commission’s focus on simplifi
Opinion Statement on the EU Commission Consultation on the Omnibus on Taxation
CFE Tax Advisers Europe submitted an Opinion Statement on the European Commission’s Call for Evidence on the Omnibus on Taxation, which aims to streamline and modernise key EU corporate tax directives, including the Anti-Tax Avoidance Directive (ATAD). CFE welcomes the Commission’s focus on simplification and supports the objective of improving the coherence and efficiency of the EU direct tax framework. In CFE’s view, targeted technical changes are necessary to reduce fragmentation, eliminate duplication, and ensure that EU tax rules remain aligned with the evolving international tax environment. The Statement highlights that the current EU tax framework has developed through successive amendments, resulting in overlapping rules, divergent national implementation and increasing compliance burdens. These issues continue to create legal uncertainty, administrative costs and distortions in cross-border business decision-making. CFE identifies a number of structural and practical concerns across the EU tax framework:
Issues Identified
Fragmentation and complexity: Divergent definitions, procedural requirements and Member State options result in parallel compliance processes and inconsistent outcomes across the Single Market.
Outdated ATAD provisions: The Interest Limitation Rule (ILR), including the fixed 30% EBITDA ratio, may produce procyclical and distortionary effects in the current high-interest environment.
Overlap with Pillar Two: CFC rules risk duplicating taxation and compliance obligations for groups already subject to effective taxation under the global minimum tax (e.g. QDMTT).
Complex hybrid mismatch rules: Particularly in relation to imported mismatches, these rules require extensive tracing and legal analysis, often disproportionate to the risks addressed.
Legal uncertainty in anti-abuse rules: Divergent national implementation and interpretation of GAAR and beneficial ownership concepts increase dispute risk and reduce predictability.
CFE calls on the Commission and Member States to pursue coordinated simplification measures, including:
Recommendations
Modernising ATAD rules: Reform the ILR through measures such as carry-forward of disallowed interest, targeted carve-outs (e.g. for third-party debt or infrastructure), and updated thresholds; introduce a de jure SME carve-out.
Addressing overlaps with Pillar Two: Simplify or eliminate duplication between CFC rules and the global minimum tax, including through exclusion or credit mechanisms.
Simplifying complex provisions: Streamline hybrid mismatch rules, particularly imported mismatches, supported by clearer EU-level guidance.
Enhancing consistency: Align GAAR wording and interpretation and reduce Member State optionality to improve uniform application.
Improving corporate tax directives: Harmonise holding thresholds, clarify beneficial ownership standards, and modernise definitions of eligible entities.
Digitalising procedures: Introduce standardised EU-wide systems for withholding tax relief, including electronic certificates of residence and simplified refund mechanisms.
Strengthening dispute resolution: Improve access, procedural clarity and efficiency under the Tax Dispute Resolution Directive, including better alignment with MAP processes.
CFE Tax Advisers Europe considers that meaningful simplification of the EU tax framework is essential to reduce compliance costs, enhance legal certainty, and support investment and competitiveness within the Single Market. Simplification should be achieved both in legislative design and in practical application across Member States. CFE therefore encourages the Commission and Member States to translate the Omnibus initiative into concrete, coordinated action that delivers a more coherent, proportionate and efficient EU tax system. We invite you to read the Statement and remain available for any queries you may have.
Fonte: CFE Tax Advisers Europe. Pubblicazione originale del 2026-04-03.