European Commission Mounts Two Tax Positions Against Luxembourg

Discriminatory tax rules and the Anti-Tax Avoidance Directive are the subjects of the European Commission’s two new tax infringement positions against Luxembourg.

In a letter of formal notice, the commission requested that Luxembourg amend the way it has implemented aspects of ATAD in its domestic law. Portugal received the same request.

• The commission says legislation in Luxembourg and Portugal goes beyond what is allowed in ATAD by categorizing securitization entities as financial undertakings.
• In the second infringement proceeding, the commission says Luxembourg taxes securitization enterprises with operations in the Grand Duchy but with a statutory seat in another EU ...