UK Continues Lone EU Withholding Tax Defence
Tax-news.com
11 September 1999

Prior to an EU Finance Ministers' meeting in Finland (the Finns are current EU Presidents) the UK has still not tabled its long-promised compromise over the proposed withholding tax on savings. It seems to be tacitly agreed that if the Brits can come up with a face-saving distinction between 'private individuals' and 'professionals' then it will be accepted. The difficulty is probably that any formula is going to require an immense bureaucracy to enforce it. Summer holidays are probably another difficulty. The withholding tax problem is holding up a directive which also includes a Code of Conduct directed against 'harmful tax competition' and some useful measures to liberalise cross-border royalty payments.

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