‘Shell Companies’ Targeted in New EU Tax Evasion Crackdown (1)

Many companies would face new reporting requirements under a proposed EU directive that aims to crack down on those that gain tax benefits without having real economic substance.

The European Commission’s goal is to “step up the fight against tax avoidance and evasion by tightening the screws on shell companies—the letterbox companies used as vehicles for tax avoidance or evasion,” EU Commissioner for the Economy Paolo Gentiloni said Wednesday at a press conference.

If approved, the rules would enter into force Jan. 1, 2024. They ...