ECJ rules recovery of unlawful tax aid cannot be automatically suspended
On 21 May 2026, in its judgment in Case C-545/24, the European Court of Justice (ECJ) clarified the interpretation of article 16(3) of Regulation (EU) 2015/1589, which lays down detailed rules for the application of article 108 TFEU on State aid control. The case concerned the recovery in Portugal of incompatible tax aid granted under the Madeira Free Zone regime through reduced corporate income tax rates, following Commission Decision (EU) 2022/1414. Under Portuguese tax law, enforcement proceedings may normally be suspended where the taxpayer provides guarantees such as a bank guarantee, suretyship insurance, an attachment or a voluntary charge, or demonstrates financial hardship. The Court held that national procedural rules must not undermine the obligation under article 16(3) that recovery be “immediate and effective”, nor the objective of restoring effective competition reflected in recital 25 of Regulation 2015/1589. The ECJ therefore ruled that national authorities and courts must disregard automatic suspension mechanisms where doing so risks delaying recovery and prolonging the competitive advantage linked to the unlawful aid. The Court further clarified that guarantees do not remove the economic benefit of the aid unless they effectively deprive the beneficiary of access to the relevant funds.
ECJ clarifies when fiduciary arrangements fall under EU AML transparency rules
On 21 May 2026, in its judgment in joined Cases C-684/24 and C-685/24, the European Court of Justice (ECJ) clarified the interpretation of article 31 of Directive (EU) 2015/849 (the Anti-Money Laundering Directive) concerning beneficial ownership transparency obligations for trusts and similar legal arrangements. The case concerned Italian fiduciary mandates (mandati fiduciari) managed by fiduciary companies and whether they could be classified as arrangements with a structure or functions similar to trusts under EU AML rules. The Court held that Member States may treat such arrangements as comparable to trusts where they present similar structural characteristics or functions and comparable AML/CFT risks. The ECJ also clarified that the lists notified by Member States to the European Commission under article 31(10) and published by the Commission are not legally binding, but merely facilitate identification of relevant arrangements. In addition, the Court found that article 31 does not breach the principles of legal certainty or equal treatment, despite the use of broad concepts such as “similarity”, since the Directive sufficiently defines the objectives and limits of Member States’ discretion. The judgment further addresses access to beneficial ownership information by persons demonstrating a “legitimate interest”, as well as safeguards linked to privacy, personal data protection and judicial remedies under Articles 7, 8 and 47 of the Charter of Fundamental Rights of the EU.
European Parliament debates possible EU levy on online gambling to finance future EU budget
On 20 May 2026, the European Parliament held a plenary debate on the possible introduction of a new EU own resource linked to the online gambling and betting sector in the context of negotiations on the future Multiannual Financial Framework (MFF). Budget Commissioner Piotr Serafin confirmed that the European Commission is currently assessing proposals put forward by the European Parliament in its interim MFF report, including possible EU levies on digital services, crypto-assets and online gambling. During the debate, Victor Negrescu MEP (S&D, Romania), who promoted the initiative, argued that a limited EU levy on online gambling operators could generate between €2 billion and €4 billion annually and help finance areas such as education, youth, mental health and addiction prevention. Several MEPs, including Danuše Nerudová (EPP, Czechia), Rasmus Andresen (Greens/EFA, Germany) and Karlo Ressler (EPP, Croatia), supported further examination of new tax-based own resources linked to highly digital and cross-border sectors. Other members, including David Casa (EPP, Malta) and representatives from ECR, Patriots for Europe and ESN, raised concerns regarding subsidiarity, national tax sovereignty, competitiveness and the possible impact on Member States with significant online gambling industries. The debate also referred to concerns over illegal online gambling platforms, fragmented national taxation systems and consumer protection. Commissioner Serafin stressed that any future own-resources package should ensure tax fairness, minimise economic distortions and become operational by 1 January 2028 or shortly thereafter.
Tina Humar elected chair of EU Code of Conduct Group on business taxation
On 21 May 2026, the Council of the EU announced the election of Tina Humar of Slovenia as the new chair of the Code of Conduct Group on business taxation for a two-year term starting immediately. The Code of Conduct Group, established in 1998 and composed of senior tax experts from the Member States, is responsible for monitoring potentially harmful tax measures within the EU and promoting fair tax competition. The group also plays a central role in the EU listing process for non-cooperative jurisdictions for tax purposes by carrying out technical screenings and assessments of third-country tax regimes. In this context, the chair is responsible for coordinating the group’s work and engaging with third-country jurisdictions in relation to tax good governance commitments and the EU blacklist process. Tina Humar currently serves as Director General in the Directorate for the System of Tax, Customs and Other Public Finance Revenues at the Slovenian Ministry of Finance.
European Parliament briefing highlights divergences over EU Inc. 28th regime proposal
On 20 May 2026, the European Parliamentary Research Service (EPRS) published a briefing comparing the European Parliament’s January 2026 recommendations on the “28th regime” with the European Commission’s EU Inc. proposal, presented on 18 March 2026. While the briefing notes broad alignment between the two institutions on the objective of reducing fragmentation and facilitating the cross-border scaling-up of innovative companies, it also identifies several important divergences in the proposed measures. In particular, the analysis raises concerns regarding the broad scope of eligible companies under the Commission proposal, the limited functionality of the proposed digital registration system and the absence of a specialised dispute resolution mechanism. The briefing further notes that the Commission proposal leaves significant discretion to Member States in areas such as insolvency rules and registration procedures, which could create new forms of fragmentation and legal uncertainty for companies and investors. On taxation, the briefing also refers to the proposed EU employee stock option framework, including deferred taxation upon the sale of shares, while noting broader concerns about uneven implementation and differing national approaches across the EU.
MEPs to discuss VAT fraud, 28th tax regime and EU corporate tax policy on 2 June 2026
The European Parliament’s Subcommittee on Tax Matters (FISC) will hold its next meeting on 2 June 2026 in Brussels. The draft agenda includes a public hearing on the role and future of the reverse charge mechanism in combating VAT fraud within the EU VAT system, with discussions expected to focus in particular on Missing Trader Intra-Community (MTIC) fraud and the possible extension beyond 31 December 2026 of the temporary reverse charge provisions under Articles 199a and 199b of the VAT Directive. FISC members will also consider amendments to the draft own-initiative report on the feasibility of a 28th tax regime and its potential to support EU competitiveness, as well as discuss the draft report on “The EU’s approach to corporate tax policy in a changing international environment”.
OECD releases new guidance to support Global Minimum Tax compliance
On 12 May 2026, the OECD published a common understanding among implementing jurisdictions aimed at supporting the first filing cycle under the Global Minimum Tax (GMT) rules and reducing compliance burdens for multinational groups and tax administrations. The guidance sets out a common understanding among implementing jurisdictions to support central filing and exchange of the GloBE Information Return (GIR) for the 2024 reporting fiscal year. Under the approach, jurisdictions applying the GMT from 2024 will, by 31 May 2026, publish a list of countries expected to have fully operational GIR filing portals, while participating jurisdictions may waive penalties or refrain from enforcing local filing obligations where the GIR has already been centrally filed in a participating jurisdiction. The OECD also released additional administrative guidance on the application of the Transitional UTPR Safe Harbour for multinational groups using 52-or 53-week fiscal years, clarifying that the safe harbour may continue to apply to fiscal years ending on or before 3 January 2027. In parallel, the OECD updated its central record confirming that the Bahamas, Kenya, Kuwait and Oman have completed the qualification process for their domestic minimum top-up taxes.
G7 Finance Ministers reaffirm commitment to international tax cooperation and Global Minimum Tax implementation
On 19 May 2026, the G7 Finance Ministers and Central Bank Governors issued their communiqué following meetings held in Paris on 18 and 19 May 2026, with participation from the OECD, IMF, World Bank Group and other international organisations. In the area of taxation, the communiqué reaffirmed support for the implementation of the OECD/G20 international tax agreement, including the Global Minimum Tax framework under Pillar Two, and highlighted the importance of ensuring a coordinated and administrable implementation across jurisdictions. The G7 also reiterated its commitment to strengthening tax transparency, combating tax evasion, aggressive tax planning, illicit financial flows and financial crime, and improving domestic revenue mobilisation capacities, particularly in developing economies. The ministers further stressed the importance of modern and effective tax systems capable of responding to digitalisation and increasingly globalised business models, while supporting investment, innovation and economic competitiveness. The communiqué additionally referred to continued cooperation with the OECD and the Inclusive Framework on international tax matters, as well as broader efforts to strengthen the resilience and fairness of the international financial system.
Save the Date: Celebrating 10 years of ETAF
