Luxembourg PM 'Astonished' at EU Tax Break List
The Luxembourg Prime Minister
Jean-Claude Juncker last week said he was 'astonished' at the
EU Working Group on Corporate Tax Breaks' latest culling of its
list of 'unfair and harmful schemes'. The Working Group has reduced
its list of tax schemes 'deemed unfair and harmful to competition'
from 250 to just 60. The Luxembourg Prime Minister
told journalists that there are still a large number of technical
and political issues that have not been addressed, and he is not
optimistic that a compromise can be reached on tax harmonisation
at next month's EU summit in Helsinki. The most obvious of these issues
is Luxembourg's opposition to the proposed 20 per cent EU withholding
tax and the European Commission's proposed code of conduct against
unfair business incentive schemes. Luxembourg has maintained that
it will accept a 10 per cent withholding tax on non-resident accounts,
but only if this is coupled in the Code Of Conduct with the abolition
of corporate tax incentives. Perhaps surprisingly, Luxembourg's
'SOPARFI' Holding Companies were on neither the original list
nor the most recent cut-down 'final' list. .
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