The study also highlights the fact that third countries' tax rules may be used to facilitate tax avoidance and the shifting of profits outside the EU. Out of the seven model ATP structures identified by the study, third countries may be involved in six of them 82 . It also identifies which tax rules and practices make a third country more prone to be used in an ATP structure (see Annex A3). Next to the low level of taxation, the existence of preferential treatment for IP or the lack of anti-abuse rules are factors that may prompt the use of third countries in a tax avoidance structure.
The study discusses Overseas Countries and Territories or Outermost Regions of some Member States. Those territories enjoy a special status within or outside the European Union. They may have different tax arrangements or full tax autonomy vis-à-vis their Member State. Those territories may be considered as third-country jurisdictions depending on their interaction with EU law, which differs according to TFEU provisions.
