Action 6: Are the Anti-Abuse Rules EU Compatible?

This article discusses the EU compatibility of the proposed anti-abuse rules in the Final Report on Action 6 of the OECD’s BEPS Project, which are also included in the Multilateral Instrument. Based on the ECJ’s approach to determining the compatibility of a national measure with the fundamental freedoms, the authors’ legal analysis indicates that the provisions are contrary to the freedom of establishment and the free movement of capital.