EU to water down tax plan
Thursday 13 May 1999
Mario Monti, acting tax commissioner, said the EU wants to find a compromise over the planned "withholding tax" on interest income, which the City says will damage its $3.25bn (pounds 2bn) a year Eurobond market. It is part of a directive aimed at creating a single financial savings market and cracking down on cross-border tax evasion.
Mr Monti told City bankers last night: "The main concern is to find a practical method of effectively concentrating on the segments the directive is intended to cover."
The City has suggested exempting all securities held in clearing systems and all holdings above 40,000 euros (pounds 26,800). This would exempt 95 per cent of Eurobonds and would target the small retail investor.
Mr Monti said: "One idea put forward is to introduce a provision which effectively distinguishes between the wholesale and retail markets. I have welcomed this suggestion as it may contribute to a compromise."
The International Securities Market Association said the compromise was the "least damaging" way of exempting the Eurobond market so far submitted.
A spokesman said: "The ISMA still prefers to see this directive shelved in its entirety until an OECD-wide approach can be achieved."
The International Primary Market Association said the compromise proposals had been drawn up at the request of the Government.
The market has warned that a 20 per cent tax on all savings held by individuals outside their country of residence would spark a rush to off-shore tax havens.
Kirstie Allsopp has waded into the female fertility debate again
Gillian Anderson lays into gender disparity in Hollywood
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered...
- 3 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 4 35,000 walrus gather on north-west Alaska beach 'for a rest'
- 5 Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Prince held a Facebook Q&A and this is the only question he answered...
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Jennifer Lawrence nude photos leak: More celebrities allegedly targeted as third wave of hacked images released
Cheryl Cole named 'the most dangerous celebrity' on the internet
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
Former Tory donor Arron Banks ups his Ukip donation to £1million following William Hague 'nobody' comment
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...