Category Taxation In Europe

Spanish Takeover Tax Break Illegal

October 29, 2009 Taxation in EUTaxation in Spain  No comments

The European Commission (EC) has declared that a tax break available to Spanish companies participating in corporate takeovers is illegal and should be revoked.

Following an investigation initiated in 2007, the EC concluded on the 28th of October that tax breaks received by Spanish companies completing corporate takeovers of non-Spanish entities within the European Union, are illegal. Instated in 2002, the law allowed Spanish companies to deduct the goodwill element of a takeover transaction. The EC has decided that it will require any instances of the tax break being utilized after the commencement of the investigation to be reversed. All transaction involving the tax scheme that occurred before December 21st, 2007, will not be altered.

The Spanish Government has made it clear that it is...

Read More

Slew of Green Taxes Recommended for UK

October 27, 2009 Taxation in UK  No comments

The Green Fiscal Commission (GFC) is recommending that the UK government instates a number of new “green“ taxes.

In a report released on October 26th, the GFC recommended that the UK government implements a set of new tax measures aimed at reducing carbon emissions and creating new jobs. The report is the conclusion of a two-year study, which examined similar attempts across Europe.

The GFC is recommending a total of £150 billion in new taxes. The list of ideas includes a £300 rise in levies on new vehicle purchases. The tax will increase by an extra £300 per year, for the next ten years. Under the GFC recommendations, fuel duties would be tripled over the space of three years. Increases in taxes on household energy were also mooted.

The GFC has stated that the increases should be a...

Read More

UK Pensioners Overpaying Taxes

October 23, 2009 Taxation in UK  No comments

Figures have shown that millions of United Kingdom’s elderly are over-paying on their taxes.

In a report published on October 22nd, the National Audit Office (NAO) released figures indicating that the UK is seeing gross-overpayment of tax by pensioners. According to the NAO, overpayments by the elderly have an especially exasperating economic effect as the income of the average pensioner is approximately 25% less than that of the rest of the population, sitting at £16,000.

The NAO report claimed that due to processing errors and discrepancies between pension providers and HM Revenue & Customs records, an estimated 1.5 million pensioners have over paid their taxes by an average £171 each, or a total of £250 million...

Read More

Tories Vow to Cut Broadband Tax

October 22, 2009 Taxation in UK  No comments

The UK Conservative Party has promised to cut the current Government’s proposed £6 annual tax on fixed landlines, if they were to be elected in 2010.

Already using taxation as a fighting point for its election campaign, the UK Conservative Party is extending a promise to cut the proposed 50 pence a month levy on all of the UK’s landlines. The tax, which has come to be dubbed the “broadband tax”, has not yet been instated, but stands as a key point to the “Digital Britain” white paper, published on the 16th of June.

On October 19th, Jeremy Hunt, Shadow Culture Secretary, stated that if the UK Conservative Party were to see success in the upcoming May election, the tax would be cut “as soon as possible”. Alternatives to the tax were not proposed at the time.

The “broadband t...

Read More

Framework for German Tax Cuts Reached

October 21, 2009 Taxation in Germany  No comments

Negotiations between the proposed coalition of Germany’s Christian Social Union (CSU), Christian Democratic Union (CDU) and Free Democratic Party (FDP) have reached a framework for future tax cuts.

Following a weekend of negotiations, statements were made on Monday the 19th of October, releasing some indications of Germany’s future tax direction. Much detail concerning the agreements reached and projections created during the negotiations has been kept secret, but clear indication has been made that all involved parties are dedicated to providing tax cuts and attempting to revive Germany’s struggling economy.

Horst Seehofer, Head of the CSU, in an October 19th press conference, said “We will certainly see tax relief in 2011,” without elaborating on the exact scope of the cuts, he sim...

Read More