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By Emre AKAN, Senior Associate and Luis MUNOZ, Partner, DLA Piper Luxembourg
The ATAD 2 directive (as defined below) has been transposed into Luxembourg law with a series of safeguards and carve-outs limiting the impact of these rules beyond the necessary. This has been reflected by the implementation of a de minimis rule applicable to investors in a Luxembourg investment fund.
The de minimis rule is specific to Luxembourg law, and this inconsistency may lead to adverse tax consequences in other Member States via the application of the imported mismatch rule, thus endangering the tax efficiency of private equity/real estate investment structures, which are so relevant to the Luxembourg investment fund industry.
How...
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