Posted on 03/05/2008 5:40:07 AM PST by TigerLikesRooster
EU majority backs clampdown on tax havens
By Tony Barber in Brussels and Haig Simonian in Zurich
Published: March 5 2008 02:00 | Last updated: March 5 2008 02:00
Germany's call for a clampdown on European tax havens won support yesterday from a majority of the European Union's 27 member states, determined to tighten rules on bank secrecy, which they see as encouraging tax evasion.
At an EU finance ministers' meeting in Brussels, only Austria and Luxembourg, which obtained special arrangements when an EU savings tax directive came into effect in 2005, appeared reluctant to back tougher rules.
Tax havens such as Andorra, Liechtenstein and Monaco are in the spotlight after German authorities paid an employee at Liechtenstein's LGT banking group for information that revealed 600 Germans held anonymous trusts running to millions of euros in the Alpine mini-state.
The finance ministers, aware of how seriously Germany takes the matter, have asked the European Commission to accelerate an analysis of how effective the tax rules are and deliver a report by the end of May rather than in October as planned.
The Commission will then be expected to prepare proposals for amending the directive, with a view to closing loopholes that have remained open since 2005.
Diplomats said Angela Merkel, German chancellor, and other European leaders might discuss tax havens at a Brussels summit in March but the subject was not yet on the formal agenda.
Early ideas for change include the extension of EU rules to cover not just interest payments on cash savings but capital gains, dividends and other returns on assets. Laszlo Kovacs, EU tax commissioner, has also suggested that the rules cover investment vehicles such as trusts, which some national tax authorities say are being exploited for tax evasion purposes.
Brussels has been studying ways to clamp down on tax evasion in non-EU territories such as Hong Kong and Macao but the Liechtenstein affair concentrated minds and forced a response at yesterday's meeting.
Prince Max of Liechtenstein, younger brother of the acting head of state and chief executive of LGT, acknowledged that the time had come "to sit down constructively with our good neighbours" and sort out the dispute sparked by its bank secrecy rules.
EU diplomats said Peer Steinbrück, German finance minister, had secured support from Denmark, France, Sweden, the UK and other countries for tighter rules.
The UK, whose backing Germany was eager to secure, gave solid support. "I don't think there is any difference at all between London and Berlin on this one," one EU diplomat said.
The most explicit opposition to Germany came from Jean-Claude Juncker, prime minister of Luxembourg, who said there should be no hasty changes.
"I'm looking forward to many years of fascinating and fundamental discussions," diplomats quoted Mr Juncker as saying.
Austrian officials similarly defended the status quo, saying their country did not practise banking secrecy when it came to criminal matters.
Are they going for the toes or the ankle?
Globalism ping!
A preview of things to come in the NAU?
I'd put that employee in Lichtenstinian jail for a long long time. That's a threat to the economic viability of the nation!
And another thing- that Prince Max guy is a dumbass.
The Taxman Cometh
tax, tax, tax is all they know how to do.
How dare someone have money and be successful!?
How dare they!?
Down with the rich, string them up. Power to the masses!
I think they the state should build statues of Marx and Lenin in Germany with the money they get from these evil capitalists.
And another thing- that Prince Max guy is a dumbass.
Unless he knows that there is political pressure right now to have that meeting (I don't know what the "...or else" would be), but he plans on smiling a lot and saying "I understand your concerns" and "we'll have to look into that" but ends up surrending nothing to the EU.
Wonder when they’ll go after their territories in the Caribbean?
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