Opinion of the Council of State on the amendments proposed by the draft finance bill regarding “Cumcums”
Yesterday, the Council of State released its opinion on the amendments proposed in the draft finance bill regarding "Cumcums," which include the introduction of the concept of "beneficial owner" in Article 119 bis of the General Tax Code and the amendment of Article 119 bis A of the General Tax Code.
In particular, the opinion provides guidance on the application of tax treaties, the concept of "transfer of value," and the approach that the paying institution should take "in situations where it participates in one or more transactions whose counterparties are unknown to it, but which could, at least in one case, be used by one of those counterparties to evade, in whole or in part, withholding tax."