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.
- 1 Jennifer Lawrence scores first UK top 40 single with Hunger Games track 'The Hanging Tree'
- 2 Shia LaBeouf claims he was raped during #IAMSORRY art installation performance
- 3 'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
- 4 Scientists predict green energy revolution after incredible new graphene discoveries
- 5 Michael Buerk wishes he killed Jimmy Savile when he had the chance - by pushing him overboard a cruise ship
Kim Jong-un 'in dire need of allies' within his own government as younger sister appointed to senior role
Black Friday UK: The shops hit by chaos and violence as shopping frenzy sweeps country
Scientists predict green energy revolution after incredible new graphene discoveries
Russell Brand: 'Katy Perry? I don’t know who that is'
Michael Buerk wishes he killed Jimmy Savile when he had the chance - by pushing him overboard a cruise ship
Obama: The only people with the right to object to immigration are Native Americans
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Ukip mocked after mistaking Westminster Cathedral – for a mosque
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
David Cameron sets out immigration reforms: We should distrust Ukip and their 'snake-oil of simple solutions'
iJobs Money & Business
Excellent Package: Austen Lloyd: EAST ANGLIA - SENIOR SOLICITOR LEVEL ROLE** -...
£Attractive Package: Citifocus Ltd: Prestigious asset management house seeks a...
£Negotiable: Citifocus Ltd: This is a varied role focusing on the firm's mutua...
£90000 - £140000 per annum + benefits: h2 Recruit Ltd: Are you a high achievin...