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A bit of good news from Europe


CliveH

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After a dull day news wise my old mucker, my mate, my bosom buddy, my soul mate, my drinking partner and donkey dangler Nick Paler comes up with a cracker!

 

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UK funds in line for €5bn tax rebate from France

10 May 2012 | 14:08

Nick Paler

Categories: Economics / Markets

Topics: Uk | France | Tax

 

UK funds could share a $5bn windfall after the European Court of Justice ruled foreign investment funds that invest in French companies should not be liable for a discriminatory withholding tax on dividends.

 

 

Prior to today's judgment, under French corporate tax law, the country levied a withholding tax of 15%, or in some cases 25%, on foreign investment funds investing in French companies, while French investment funds were exempt.

 

 

However, following a ruling, UK pension funds and other investment funds that invest in French companies - including OEICs - will no longer have to pay the additional tax.

 

The European Commission (EC) has already forced some European countries, such as Sweden and Spain to change their rules so they do not levy discriminatory withholding taxes against foreign investors, PricewaterhouseCoopers (PwC) said.

 

PwC estimates that the case will result in tax refunds to UK investment funds of up to €5bn.

 

According to PwC, this case will set a precedent, meaning other EU countries, such as Germany, Netherlands and Belgium, that levy a withholding tax on foreign investment funds are unlikely to be able to continue to do so.

 

Teresa Owusu-Adjei, tax partner at PwC, said: "The ultimate beneficiaries of this ruling against discrimination will be UK companies and employees saving for their retirement who will see improved returns on investments in Europe.

 

"UK pension and investment funds will no longer have to pay more tax on their dividends from investments in French companies than their French equivalents, and in a difficult economic climate, funds will welcome any measure which allows them to maximise returns."

 

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So in summary - a law illegal under EU Law but practiced by many EU countries to restrict foreign investment (what better way than to apply punitive tax to the investment returns??) has a last been ruled illegal by the European Court.

 

About bloody time! >:-(

 

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CliveH - 2012-05-10 4:39 PM

 

 

However, following a ruling, UK pension funds and other investment funds that invest in French companies - including OEICs - will no longer have to pay the additional tax.

 

Teresa Owusu-Adjei, tax partner at PwC, said: "The ultimate beneficiaries of this ruling against discrimination will be UK companies and employees saving for their retirement who will see improved returns on investments in Europe.

 

I wonder Clive if the Government will be licking their lips thinking, another £5billion we could steal of the public, just like GB did.

 

Another scenario is that the EU could try to increase our contributions by lets say £5billion to help certain countries receive more agricultural subsidies......Lets see, who gets most out of CAP?

 

Dave

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