EU Aims to Deny Tax Breaks to Multinationals With Shell Entities

The European Union will make an official proposal to deny companies tax benefits linked to the use of shell entities, a top tax official said Wednesday.

The EU loses between 30 and 70 billion euros ($35-$82 billion) to corporate tax avoidance each year, said Gerassimos Thomas, director general taxation and customs at the European Commission.

• “Entities with no or only minimal substance and economic activity continue to be of extensive use in some EU Member States and are often linked to aggressive tax planning, tax evasion or money laundering,” according to prepared remarks Thomas made at a Finland Chamber ...