A bill aimed at preventing abuse by shell companies for tax evasion was introduced in December 2021. We are talking about the EU Directive ATAD3 (the Anti-Tax Avoidance Directive). The final adoption of this regulation was planned for July 2023. However, a number of EU member states oppose its current version.
They could not reach a consensus regarding the criteria for presence or substance, the tax consequences of recognizing an organization as a shell, the obligations of companies to provide information reporting, and the list of information for exchange between EU states.
During 2023, the text of the ATAD was periodically discussed in the EU Council. The European Parliament’s proposed amendments to ATAD3 would extend the scope of the Directive to more companies.