Paolo Gentiloni, the European Commissioner for Economy, presented, on Wednesday 11 May, the European Commission’s new proposal for a directive, known as ‘DEBRA’ (Debt-Equity Bias Reduction Allowance), concerning deductible tax incentives to reduce debt.
With this measure, the Commission hopes to promote access to the finance that companies need to become more resilient, by introducing a franchise that will give equity the same tax treatment as debt. Thus, increases in a taxpayer’s...