EU unveils plans to go after tax 'freeloaders'

The European Commission Monday (25 November) unveiled plans to clamp down on tax 'freeloaders' in its latest bid to target corporate tax avoidance.

Officials plan to re-write rules on the tax status of parent and subsidiary companies to prevent firms from setting up 'letter-box' companies in different countries to evade tax.

The EU's Parent-Subsidiary directive, which was last revised in 2003, was originally designed to ensure that companies would not be taxed twice within the EU,...