UK directors are exceptional—some are 123 years or older, and one is a son of God.

Moody's Analytics discovered [Jan 2024] that over 2,200 shell companies have directors aged 123 years or older, even though the oldest known person lived to be 122. One of the directors mentioned is said to be 942 years old, which means he would have been born in the 11th century.

Also, we have Jesus.

Moody's Analytics report

• identified 21 million "red flags" associated with 472 million shell companies it examined.
• These "red flags" serve as a signal that a specific company may be used for financial crimes.
• Unusual individuals appointed as directors are just one of the seven key behaviours highlighted in Moody's Analytics study as typical "red flags" associated with shell companies, allowing for recognition of their involvement in suspicious activities.

Shell companies do not conduct or engage in minimal business activities. Sometimes, they can serve helpful trade functions. However, they can also be abused for aggressive tax planning or tax evasion purposes

So, with all of the above, the EU wants to Unshell-shell companies.

Unshell” Proposal:

The European Parliament has been actively working on the “Unshell” regulations, which aim to prevent the misuse of shell companies for tax evasion and aggressive tax planning. These regulations are part of a broader effort to ensure fair and effective taxation within the EU.

Key Points of the “Unshell” Proposal:

1. Substance Requirements: The proposal introduces a filtering system for EU company entities. Companies must pass a series of gateways related to income, staff, and premises to prove they have sufficient economic substance
2. Presumption of Shell Status: Entities that fail to meet these substance requirements are presumed to be shell companies. They must provide additional evidence to rebut this presumption by demonstrating a commercial, non-tax rationale for their structure
3. Loss of Tax Advantages: Shell companies that cannot rebut the presumption will lose any tax advantages granted through bilateral tax treaties or EU directives
4. Enhanced Transparency: The regulations aim to increase transparency and data sharing among EU member states to identify better and combat the use of shell companies for illicit purposes

Legislative Process:

• The European Commission presented the directive in December 2021.
• The European Parliament adopted a non-binding report in January 2023.
• Negotiations in the Council are ongoing, requiring unanimity for adoption

These measures are designed to close loopholes and ensure that companies operating within the EU contribute their fair share of taxes, thereby supporting sustainable public finances.

Source

• https://markets.businessinsider.com/news/stocks/business-fraud-moodys-red-flags-investors-ratings-outlook-economy-markets-2024-1
• https://www.moodys.com/web/en/us/about/insights/data-stories/kyc-innovation-shell-company-indicator.html
• 'Unshell': Rules to prevent the misuse of shell entities for tax .... https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI%282022%29733648.