It is widely recognised that the model for withholding taxes in Europe needs to change, as the current approach is complex, costly and is not delivering the right results for financial intermediaries, investors and tax authorities. The momentum for that change is building, with both the European Parliament and European Commission launching initiatives for a new approach. All parties should welcome this focus with the benefits of potential standardisation, lower costs and better compliance as the alternative of increasingly fragmented procedures will potentially give the opposite effect. The European Parliament’s vote of support for a new framework puts the next steps with the European Commission and both financial intermediaries and investors should seek to engage in the debate to ensure that the final result works for all parties and finally resolves what has been a long acknowledged problem effecting investment returns and compliance.
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It is widely recognised that the model for withholding taxes in Europe needs to change, as the current approach is complex, costly and is not delivering the right results for financial intermediaries, investors and tax authorities. The momentum for that change is building, with both the European Parliament and European Commission launching initiatives for a new approach. All parties should welcome this focus with the benefits of potential standardisation, lower costs and better compliance as the alternative of increasingly fragmented procedures will potentially give the opposite effect. The European Parliament’s vote of support for a new framework puts the next steps with the European Commission and both financial intermediaries and investors should seek to engage in the debate to ensure that the final result works for all parties and finally resolves what has been a long acknowledged problem effecting investment returns and compliance.
If you are not a subscriber, subscribe now to read this content.
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