New EC amendments to the Parent-Subsidiary Directive: a good move towards better tax governanceNew EC amendments to the Parent-Subsidiary Directive: a good move towards better tax governance


26 Nov 2013


Euro & Finance
Trade & Industry

Press release

ACCA (the Association of Chartered Certified Accountants)  welcomes today’s publication of the amendments to the Parent-Subsidiary Directive. It is a  key  piece of EU company law  legislation, which will hopefully help reducing tax avoidance in Europe in closing existing  legal loopholes that some companies have been using to escape paying their fair share of fiscal contribution.

Chas Roy Chowdhury , head of Taxation at ACCA, says: “ACCA believes that companies  have a wider responsibility to be good corporate citizens and therefore need to consider the wider impacts on social capital of their tax policies. Aggressive tax avoidance for example, by which we mean completely artificial arrangements which have no clear purpose other than to avoid tax by complicated schemes, is unprincipled, and companies should not pursue such arrangements. We are broadly supportive of the European Commission’s initiative seeking to amend the existing  Parent-Subsidiary Directive - originally conceived to prevent the double taxation of same-group companies based in different Member States - which update its anti-abuse provision and aims to ensure that specific tax planning arrangements, such as hybrid loans,  can no longer benefit from tax exemptions. This should discourage  companies from exploiting exemptions, for tax benefit, in a way that they were not intended for various intra-group payments across the EU.”

ACCA believes that greater transparency on tax treatment and how decisions on tax are made would benefit companies’ reputations and help wider stakeholders to understand the issues and complexity and how it affects the organisation.

Chas Roy Chowdhury explains, “Tax cannot be seen in complete isolation from the wider business model, and its strategy and planning. It is one part of the overall long-term value creation process for the company and should be seen in that broader framework. This includes the context of employment created, investment in research and development, the wider social and environmental benefits and impacts in regions where the company operates, and the value offered to consumers.

As a global accountancy body, ACCA also favours co-ordinated international action to address matters which cannot be resolved by individual jurisdictions, such as transfer pricing and a level playing field to disclosure, which are being pursued via G20 and OECD discussions”, Chas Roy Chowdhury concludes.



For more information, please contact:

+32 (0) 2 286 11 37


Notes to Editors

  1. ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
  2. We support our 162,000 members and 428,000 students in 173 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of over 89 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.
  3. Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.

Cecile Bonino

Public Affairs and Media Relations Manager-EU
CBI business house
14 rue de la Science
BE-1040 Brussels
Tel:+32 (0) 2 286 11 37
Mob: +44 (0) 7809595008

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