Executive summary
In the context of a tax audit procedure initiated following a spontaneous exchange of information by the Dutch tax authorities, the Spanish tax authorities (STA) challenged the domestic withholding tax exemption on interest paid to European Union (EU) residents based on the application of the General Anti-Abuse Rule (GAAR), on the grounds that the recipient of the interest was a conduit entity and not the beneficial owner of the income.
The approach of the STA and administrative …