ATAD | LuxCMA’s view to the EU Commission formal notice sent to Luxembourg to amend its legislation transposing the ATAD

On 14 May 2020, the European Commission announced that it decided to send a letter of formal notice to Luxembourg asking it to correctly transpose the interest limitation rule of the Anti-Tax Avoidance Directive (Article 4 of the Council Directive (EU) 2016/1164). Under current Luxembourg law, securitization companies covered by Regulation (EU) 2017/2042 of 12 December 2017 (EU Securitization Regulation) are excluded from the scope of the interest limitation rules. If Luxembourg does not act within the next four months, the European Commission may send a reasoned opinion to the Luxembourg authorities.