Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 8/3/2012

European Union - Tax obstacles to cross-border venture capital investments 

August 3:  The European Commission today initiated a public consultation to collect examples of direct tax problems that arise when venture capital is invested across borders.

The EC announcement—IP/12/881 (3 August 2012)—states that due to mismatches among the tax systems of the 27 EU Member States, venture capital funds may encounter double taxation and legal and administrative uncertainty when they invest across borders.


The public consultation is intended to:


  • Find concrete examples of direct tax problems and to assess their effect in terms of additional costs to investors and enterprises in the EU
  • Generate suggestions on feasible solutions to address problems
  • Provide a basis for the EC to decide if there is a need for EU-level solutions to remedy the problems and develop the most appropriate policy response by 2013

Comments are due by 5 November 2012.




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