Ministry of Finance met with business to discuss ATAD implementation

The meeting also brought together international experts from EU4PFM, the OECD, and the IMF to discuss the draft law on implementing the EU Anti-Tax Avoidance Directive (ATAD), developed by the Ministry of Finance with the support of international experts as part of Ukraine’s European integration commitments.

The meeting’s central focus was on Article 6 of the ATAD – the general anti-abuse rule (GAAR), one of the key elements of the modern tax base protection system. Participants reviewed the structure and logic of the Directive, its objectives, and the role of the GAAR within the broader system of anti-avoidance rules. They also examined the extent to which current Ukrainian legislation complies with ATAD provisions and discussed comments, observations and proposals from business representatives and the expert community.

Paulius Majauskas, EU4PFM International Key Expert on Tax, stressed:

“The European Commission’s annual progress reports are a key benchmark of Ukraine’s readiness for EU membership. In the area of taxation, Ukraine has consistently demonstrated progress despite the extraordinary challenges of full-scale war. One of the European Commission’s most consistent recommendations is the ATAD implementation. Its comprehensive transposition into Ukrainian legislation will be a crucial step toward a more transparent, predictable and resilient tax system that meets EU standards and supports both Ukraine’s accession path and the development of a stronger national economy.”

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Anti-tax avoidance directive (Council Directive (EU) 2016/1164, including its further amendments – ATAD2) was developed as the EU’s response to the global challenges of aggressive tax planning and the findings of the OECD’s BEPS project. Its key idea is to ensure that profits are taxed where economic value is created. 

The Directive aims to restore fairness and trust in tax systems while protecting the EU’s internal market from tax base erosion and the artificial shifting of profits between jurisdictions. This cannot be sufficiently achieved by EU member states acting individually. 

ATAD (as a secondary EU legislation that requires implementation at national level)  establishes a minimum common standard for EU member states in the area of combating tax avoidance, while allowing countries to implement stricter national rules. Minimum level of harmonisation does not prevent EU member states from retaining or adopting more stringent measures, but those measures must respect EU fundamental freedoms (free movement of capital, freedom of establishment) as well as key principles (such as proportionality and non-discrimination) established in the EU acquis.