The European Commission has opened a feedback period on its Proposal for a Council Directive introducing a debt-equity bias reduction allowance (DEBRA), which was announced on 11 May 2022. As previously reported, the allowance is meant to incentivize equity investment, rather than debt, by providing that increases in a taxpayer's equity from one tax year to the next will be deductible from its taxable base, similar to what happens with debt. The allowance would be computed based on the dif…