EU Eyes New Powers to Block Breaks for Corporate Tax Dodgers

The European Union will propose giving countries sweeping new powers to clamp down on shell companies in order to tackle tax avoidance, according to a draft proposal seen by Bloomberg.

The new rules would give member states the ability to block benefits used by companies deemed to have little economic purpose other than to gain tax advantages, according to the draft, which is still subject to change. The EU would give countries the power to deny tax perks previously approved under bloc-level directives.