CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Savings Tax Negotiations Continue Behind The Scenes

Savings Tax Negotiations Continue Behind The Scenes

by Carla Johnson, Investors Offshore.com

11 December 2002


The Financial Times reported on Tuesday that negotiations with key players in the EU savings tax debate were continuing behind the scenes prior to today's crucial meeting of EU finance ministers.

Although Switzerland has now put forward detailed proposals for voluntary information exchange coupled with a withholding tax, and previously vociferous objectors such as the UK's Gordon Brown appear to be softening their position on the issue, Switzerland has said that it will only impose the levy if Austria, Belgium and Luxembourg are also made to tax the savings interest of non-residents.

Thus far, the three countries have steadfastly refused to cooperate, but the FT revealed that talks between the Danish EU presidency and the maverick nations took place on Tuesday.

The UK business daily suggested that several options are under consideration in order to break the deadlock, including lowering the rate of the withholding tax, although this is likely to be opposed by EU member states such as France and Germany.

Another alternative could be to offer concessions in other areas, according to the FT, which revealed that:

'The Austrians have already asked other EU governments to prolong restrictions on the flow of heavy traffic through the Alps...[and] Belgium is keen to see progress on other tax issues.'

Although Luxembourg is expected to be a tougher nut to crack, the Financial Times suggested that the jurisdiction's government might choose to give way rather than face being left isolated.

A comprehensive report on various international initiatives, including the EU's Savings Tax Directive is available in the Tax News Reports Shop at http://www.tax-news.com/reportshop/

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »