27/04/2017 (Agence Europe) – On Thursday 27 April, the European Parliament approved (591 votes to 36 with 12 abstentions) its recommendations to the Council on the treatment of hybrid mismatches between a European country and a third country. “These arrangements are frequently used by the largest companies with the sole purpose of reducing corporate taxation”, explained Sweden's Olle Ludvigsson (S&D), rapporteur on the dossier. In February, the European finance ministers agreed on the second version of the anti-tax avoidance directive (ATAD2), aiming specifically to respond to these situations (see EUROPE 11730). The Swedish rapporteur added a definition of the notion of “disregarded permanent establishment” and strongly criticised exemptions for the banking sector introduced by the Council (see EUROPE 11756). (EL)