Harmonizing EU Tax Policy: the Implementation and Impact of Art. 9, 9 b ATAD and DAC 6 on combating Tax Avoidance and Enhancing Transparency with regard of the German and Austrian legal order. Future European prospectives

Abstract

The European Union's efforts to combat tax avoidance and enhance tax transparency through the Anti-Tax Avoidance Directive (ATAD) and the Directive on Administrative Cooperation (DAC), notably DAC 6, aim to unify tax policies and tackle BEPS issues. These initiatives introduce measures such as the General Anti-Avoidance Rule (GAAR) and Specific Anti-Avoidance Rules (SAARs), alongside mandates for disclosing aggressive tax planning schemes, to address and mitigate tax avoidance. In order to address tax mismatches caused by hybrid elements, Articles 9 and 9b of ATAD 2 require member states to take certain measures. These measures include preventing certain deductible payments from escaping taxation in the hands of the recipient and avoiding double deductions for expenses without corresponding taxable income. Germany and Austria exemplify how EU member states have adapted their national laws to align with these directives, focusing on hybrid mismatches and reporting obligations with particular regard of DD for cross-border arrangements to prevent tax avoidance. Despite progress, challenges in standardizing the application of these directives across the EU persist, primarily due to the flexibility in implementation and the complex diversity of member states' tax systems. This has led to varied implementation success and underscores the need for further harmonization and clarity in EU tax policy. The interaction between national laws and EU directives reflects the ongoing effort to balance national tax autonomy with collective EU tax reforms. As the EU continues to refine and integrate these directives into national legislation, it strives to develop a transparent, fair, and efficient tax system that reduces avoidance opportunities while respecting member states' sovereignty. The ATAD and DAC 6 represent significant steps toward a more cohesive and transparent tax framework in the EU, offering a roadmap for future tax policy and administration efforts aimed at minimizing tax avoidance and enhancing transparency across member states.