Anti-Tax Avoidance Directive (ATAD)

The Anti-Tax Avoidance Directive (ATAD) is a European Union law aimed at preventing tax avoidance by multinational companies. It sets rules to ensure that these companies pay a fair share of taxes in the countries where they operate. ATAD tackles strategies like base erosion, profit shifting, and the use of low-tax jurisdictions. By implementing these rules, the directive promotes tax transparency and fairness, ensuring that businesses cannot easily exploit loopholes to reduce their tax liabilities, thus protecting public revenues in EU member states.