Over taxation for European REICs after an initiative to tackle tax evasion

The letter was compiled by 12 European and international associations, representing a broad coalition of stakeholders active in the areas of real estate investment and infrastructure. The initiative is supported by companies based in France, Germany, Italy, Luxembourg, and the United Kingdom.

The companies, while fully supporting the Commission’s fight against tax evasion, oppose the initiative, saying it could lead to abusive tax practices, while stressing that its implementation is premature, given some important measures in this area that have recently been implemented and their impact has not been adequately assessed.

Particularly noteworthy is the lack of a definition of “virtual entity”, which may lead to the targeting of companies with fewer employees or other diversifications, which were created for legitimate business purposes. The European Commission must therefore ensure that any new initiatives target exclusively fictitious tax evasion entities.

You may read the letter here.