European Union: European Commission closes consultation on Call for Evidence for an Impact Assessment on Omnibus on taxation

On 16 March 2026, the European Commission closes the consultation as part of the call for evidence for an impact assessment on the Omnibus on taxation. The initiative aims to simplify the EU direct taxation framework in order to support competitiveness in the internal market, reduce reporting and compliance burdens, remove outdated or overlapping provisions, clarify legal concepts, and improve the application of tax rules and procedures. Possible amendments may address the Controlled Foreign Company rules under the Anti-Tax Avoidance Directive, including overlaps with Pillar Two and differences in national implementation, as well as the Interest Limitation Rules, in light of their economic effects and their impact on certain sectors and small and medium-sized enterprises. The scope and procedural aspects of the Parent-Subsidiary Directive, the Interest and Royalties Directive, and the Tax Merger Directive may also be reviewed to improve their operation and reduce administrative requirements. In addition, limited and targeted adjustments to the Tax Dispute Resolution Mechanisms Directive may be considered to enhance clarity and consistent application across Member States. The legislative proposal is planned for the second quarter of 2026.