EU targets intra-group loans to tackle tax evasion

The EU Commission is targeting intra-group loans in the opening salvo in its clampdown on corporate tax avoidance.

The Commission plans to close loopholes in the Parent-Subsidiary Directive, which it claims has been used by multinationals to avoid paying taxes.

In particular, companies will no longer be able to exploit differences in the way intra-group payments are taxed across the EU to avoid paying any tax at all.