EU tax reform promises €8bn in savings, but shell companies untouched

The EU's new tax reform aims to save businesses €8 billion by eliminating taxes on cross-border payments of dividends, interest, and royalties, which alone accounts for €5.3 billion of the projected savings. Despite the significant financial benefits, the reform leaves shell companies untouched, potentially allowing them to continue avoiding taxes that other companies will now pay. This discrepancy could lead to increased scrutiny over corporate tax avoidance and highlight the need for broader reforms to ensure a level playing field. The move is crucial as it aims to streamline business operations across borders, but the lack of change for shell companies raises questions about the overall fairness and effectiveness of the reform.