08/09/2010
Banking tax: double taxation problem still unresolved
The finance ministers of the 27 EU member countries, meeting yesterday in Brussels, reached a minimal consensus on the question of taxation of banks, Agefi reports. The problem of double taxation remains as a stumbling-block. The UK government intends to tax not only establishments which are headquartered in the UK, but also “affiliates of foreign banks present in the City,” a British official said yesterday. For its part, “France is favourable to taxation of the parent company and its affiliates, but not branches in local locations,” explained the French minister of the economy, Christine Lagarde. French banks with offices in the City may thus be taxed twice: once in France for the group as a whole, and once on British affiliates of the same groups in the UK.
