Members of the European Parliament (MEPs) have adopted their opinion to the EU Commission’s proposed legislation aimed at clamping down on shell companies.
In their opinion, MEPs amended the Commission proposal, notably by slightly lowering the thresholds below which a company is exempt of the reporting requirements of the directive, and by providing for penalties to be levied also on companies with zero or low revenue. They stated that companies subject to the reporting requirements should be obliged to provide more detailed information.
To allow a better distinction between legitimate shell companies and those existing for tax purposes, MEPs also amended the information sharing requirements between member states to ensure a better quality and completeness of data being exchanged.
The opinion shall now be transmitted to the EU Council for its consideration while adopting the directive.