On 22 December 2021, the European Commission presented a proposal for a Directive laying down rules to prevent the misuse of shell entities for tax purposes (UNSHELL) and amending Directive 2011/16/EU. The proposal seeks to create a new minimum economic substance test, organized in several steps, to help Member States identify undertakings that do not perform any actual economic activity and that can be misused for tax avoidance or evasion purposes. On 6 April 2022, the European Tax Adviser Federation (ETAF) sent a feedback to the European Commission on the proposed Directive and formulated comments about the scope, the burden of proof and the consequences.
