European Commission Withdrawing Proposals on Financial Transactions Tax, Misuse of Shell Entities, Debt-Equity Bias Reduction Allowance, and Transfer Pricing

The European Commission unveiled its 2026 work programme on 20 October 2025. One notable aspect of the 2026 work programme is the planned withdrawal of several tax-related legislative proposals within six months, including:

• Proposal for a COUNCIL DIRECTIVE implementing enhanced cooperation in the area of financial transaction tax;
• Proposal for a COUNCIL DIRECTIVE laying down rules to prevent the misuse of shell entities for tax purposes and amending Directive 2011/16/EU;
• Proposal for a COU…