In principle, the government is positive about the objectives as set out in the Omnibus Directive, but has important reservations about the proposed relaxation of the ATAD Directive.
Unlike recent cases in which it was concluded that fraus legis (abuse of law) applied, this case was decided entirely on the basis of the interest deduction limitation in the CITA 1969.
The Omnibus proposal is an ambitious proposal for a directive from the European Commission that aims to reduce administrative burdens and tax burdens for taxpayers.
The measures that have now been launched for consultation are intended to strengthen the tackling of dividend stripping even more, on top of the existing dividend stripping measure.
The proposed measure is based on the assumption that the costs of the hedging instrument are fully deductible, while the projected profit will fall under the participation exemption.
