Brussels gives Portugal four months to change tax avoidance legislation

in News · 18-05-2020 11:32:00 · 1 Comments

The European Commission has given Portugal a period of four months to correctly transpose the EU law against tax avoidance, as it considers that the national legislation adopted is inadequate in terms of the interest limitation rule.

In the context of the package of infringement proceedings brought to the Member States for infringements of European law, the Community executive announced that it has requested Portugal and Luxembourg to amend the respective laws transposing the anti-tax avoidance directive (Community law) adopted in 2016.

“Both Member States use the possibility to exempt financial institutions from the interest limitation rules provided for in the anti-tax avoidance directive. However, the respective national legal acts go beyond the permitted exemptions and provide for unlimited interest deductibility for the purposes of Corporate Income Tax (IRC), including securitization entities, which do not qualify as 'financial companies' under of the directive”, points out the European Commission.

Brussels warns that if the two countries do not act accordingly within the next four months, it will move to the second and final step of the infringement process before an eventual appeal to the Court of Justice of the European Union.


Comments:

The European Commission has given Portugal a period of four months to correctly transpose the EU law against tax avoidance.
Well now, isn't that so very kind of unelected non-Portuguese bureaucrats to dictate to the Portuguese government and people what they have to do.
Portugal and Portugal alone should be making decisions and laws for itself and for its own purposes, not by unelected non-Portuguese bureaucrats.

By Marc J. Moniz from USA on 20-05-2020 04:26
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