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EU looks at stronger savings income rules

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The Council of the European Union met on 15 November 2013 to discuss the taxation of savings income. The Council discussed a draft directive aimed at strengthening EU rules on the taxation of savings income. The draft amendments are intended to prevent the main directive’s circumvention, reflecting changes to savings products and developments in investor behaviour since it came into force in 2005. The aim is to enlarge the directive’s scope to include all types of savings income and products that generate interest or equivalent income and to require tax authorities to take reasonable steps to establish the identity of beneficial owners using a ‘look-through’ approach. The Council’s discussion confirmed broad support for the amended directive, but no agreement was reached. The dossier will be discussed again, with a view to reaching an agreement before the end of the year.