EFAMA would like to make positive use of the opportunity to comment on the Commission recommendation dated 28 January 2016 on the implementation of measures against tax treaty abuse as well as on the implementation of TRACE for the purpose of simplifying withholding tax (“WHT”) procedures.

As the representative of the European fund industry, we believe that European investment funds in the form of Collective Investment Undertakings (“CIUs”) i.e. those established according to Directive 2009/65/EC [“UCITS”] as well as Alternative Investment Funds “AIFs” according to Directive 2011/61/EU as well as their investors have an important role to play in providing non-bank finance and in the development of the Capital Markets Union. We do feel there is a risk this role will be impeded by restrictive rules in double tax treaties and/ or burdensome local WHT-relief procedures. The following considerations shall emphasize our thoughts and ideas for solutions.