Update: Member States agree to amend Parent-Subsidiary Directive
The European Union’s (EU) 28 Finance Ministers agreed, on June 20, 2014, to amend the EU’s Parent –Subsidiary Directive (Directive), addressing the effects of tax arbitrage resulting from EU Member States’ varying tax treatments of hybrid loans. The Member States have agreed that the Directive’s benefits should not result in ‘double non-taxation,’ that is, income going untaxed