Sonja Cindori
Faculty of law, University of Zagreb,  Zagreb, Croatia
Toni Janković
Ministry of finance, Tax administration, Split, Croatia

​ ​​ ​​

4th International Conference – ERAZ 2018 – KNOWLEDGE BASED SUSTAINABLE ECONOMIC DEVELOPMENT, Sofia- Bulgaria, June 7, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia;  Faculty of Business Studies, Mediterranean University – Podgorica, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia, ISBN 978-86-80194-12-7


Individuals involved in money laundering procedures are trying to take advantage of complex corporate structures in an international context in order to disguise their true identity. Consequently, the EU Member States endeavour to ensure that entities established in their national territory have access to up-to-date information regarding a natural person who is the ultimate owner or controls the company for the purpose of obstructing the misuse of legal persons for criminal activities. Similar structures can also be used by individuals to gain the benefit of taxation which they are not otherwise eligible for, using treaty or directive shopping. 

Key words

beneficial owner, tax, evasion, avoidance, money laundering, register  


  1. Directive 2003/49/EC of 3 June 2003 on a common system of taxation applicable to interest and royalty payments made between associated companies of different Member States (OJ L 157, 26.6.2003, p. 49–54).
  2. Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments (OJ L 157, 26.6.2003, p. 38–48).
  3. OECD (2015), Model Tax Convention on Income and on Capital 2014 (Full Version)Commentary on Article 1: Concerning the Person covered by the Convention, OECD Publishing, p. C(1)-19.
  4. Vella, J. (2015), Corporate tax practices and aggressive tax planning in the EU, Directorate General for Internal Policies, Policy Department, A: Economic And Scientific Policy, European Parliament, pp. 6. Retrieved on (02/03/2018)
  5. Thuronyi, V. ed., (1996), Law Design and Drafting, Vol. 1, Vanistendael, F. Tax Legal Framework for Taxation International Monetary Fund, pp. 44. Retrieved on (08/3/2018)
  6. Alldridge, P. (2017), Criminal Justice and Taxation, Oxford University Press, Oxford, pp. 29.
  7. OECD (2015), Model Tax Convention on Income and on Capital 2014 (Full Version), Commentary on Article 1: Concerning the Person covered by the Convention, OECD Publishing, p. C(1)-19.
  8. Jinyan, L. (2012), Beneficial Ownership in Tax Treaties: Judicial Interpretation and the Case for Clarity, Comparative Research in Law & Political Economy, Research Paper No. 4, pp. 191. Retrieved at (12/3/2018)
  9. Weeghel, S. (1998), The Improper Use of Tax Treaties, Kluwer Law International, London, pp. 117.
  10. Reimer, E., Alexander Rust, A., (1991), Klaus Vogel On Double Tax Conventions, Wolters Kluwer, Boston, pp. 50.
  11. OECD (2017), Model Tax Convention on Income and on Capital: Condensed Version 2017, OECD Publishing, pp. 35, 36, 37.
  12. Ibidem, Commentary on Article 10, 11 and 12, pp. 233, 259, 271.
  13. Ibidem, Commentary on Article 10, 11 and 12, pp. 234, 260, 271, 272.
  14. Council Directive 2011/96/EU of 30 November 2011 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (OJ L 345, 29.12.2011, p. 8–16)
  15. Court of Justice of the European Union, Case C-116/16, Skatteministeriet v T Danmark (2016/C 270/29), Case C-117/16 Skatteministeriet v Y Denmark Aps, (2016/C 270/30);
  16. [16]  Madinger, J. (2012), Money Laundering: A Guide for Criminal Investigators, CRC Press, Taylor & Francis Group, Boca Raton, pp. 5.
  17. Turner, J. E. (2011), Money Laundering prevention: Deterring, Detecting, and Resolving Financial Fraud, John Wiley and Sons, New Jersey, pp. 3.
  18. Cindori, S. (2007), Sustav sprječavanja pranja novca, Financijska teorija i praksa 31 (1), pp. 56.
  19. FATF, FATF Guidance: Transparency and Beneficial Ownership, Financial Action Task Force, France. Retrieved at: (9/4/2018)