Denmark must adopt EU controlled foreign company tax rules, Commission says

The EU Commission on July 25 decided to send a reasoned opinion to Denmark for its failure to communicate to Commission rules implementing controlled foreign company (CFC) rules required by the EU anti-tax avoidance directive (Council Directive (EU) 2016/1164 or ATAD).

The CFC rules aim to deter profit shifting to low or no-tax countries, the Commission said.

The Commission warned that it might decide to bring the case before the Court of Justice of the EU if Denmark does not act within the next two months.

Commission also today decided close infringement proceedings against Belgium, Cyprus, Czechia, France, Greece, Portugal, and the United Kingdom.

These countries have now fulfilled their obligations to communicate to the Commission their respective anti-tax avoidance rules implementing the ATAD.