EU Countries Back Shell Company Bill Revamp, Data-Sharing Focus

EU countries backed a Polish proposal to largely reject a European Commission bill to tackle shell companies for tax purposes, according to people familiar with the matter.

Instead, the countries asked the commission to revise an existing law that enables EU tax authorities to share information on potentially harmful practices.

In a Tuesday meeting, EU member states instructed the commission to develop new provisions to help authorities identify potential shell entities, which it will propose as part of an overhaul expected next year of the EU’s tax data-sharing law, known as the Directive for Administrative Cooperation, or DAC.

The move ...