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Pistone, Pasquale --- "The limits to interest deductibility: An ad hoc anti-abuse rule in the proposal for a CCCTB Directive" [2013] ELECD 1161; in Lang, Michael; Pistone, Pasquale; Schuch, Josef; Staringer, Claus; Storck, Alfred (eds), "Corporate Income Taxation in Europe" (Edward Elgar Publishing, 2013) 272

Book Title: Corporate Income Taxation in Europe

Editor(s): Lang, Michael; Pistone, Pasquale; Schuch, Josef; Staringer, Claus; Storck, Alfred

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781782545415

Section: Chapter 8

Section Title: The limits to interest deductibility: An ad hoc anti-abuse rule in the proposal for a CCCTB Directive

Author(s): Pistone, Pasquale

Number of pages: 31

Abstract/Description:

The proposal for a CCCTB Directive (hereinafter: the CCCTB Directive) marks an important step in the evolution of the short history of European Union secondary law on tax matters, for being the first normative text including a supranational definition of abuse and a GAAR supplemented by two ad hoc anti-abuse clauses, or SAARs. Unlike all other directives, the goal here is not to merely allow EU Member States to apply their anti-abuse clauses, or to counter abuse solely within the specific boundaries of ad hoc provisions, but rather to provide a comprehensive framework within which the benefits of secondary Union law apply to genuine transactions only. This is an important development that will prevent some shortcomings at the interpretative level concerning the boundaries of tolerance of abusive practices and secure a level playing field within the European Union. The chapter mainly focuses on the wording, scope and effects of one of the ad hoc anti-abuse clauses contained in the proposed CCCTB Directive, in other words, Article 81, and its impact on relations with third countries, with a view to detecting the potentially critical points that may arise in the interpretation and application of such a provision. However, some additional remarks are needed for the same purpose in respect of two other provisions included in Chapter XIV (Anti-abuse Rules), namely Article 80 (General anti-abuse rule) and the other SAAR, in other words, Article 82 (Controlled foreign companies). This is particularly important in order to understand the influence of the legal context on the interpretation and application of Article 81.