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Credit to: Corruption News : EU may stop corporate tax regimes favouring debt over equity –officials
hhhmmm your thoughts guys?
The European Commission will propose a draft law next year to stop tax regimes that favour raising corporate debt over equity as it tries to reduce the amount of company loans on banks’ books and to cut companies’ leverage, officials said on Monday, reports Reuters.
In most European countries, companies can defray tax against interest payments on debt but no such deductions are allowed when raising cash through equity markets.
The Commission plans to begin a public consultation on how to tackle this distortion and officials say that the European Union’s executive arm will come up with a proposal in 2016.
In most European countries, companies can defray tax against interest payments on debt but no such deductions are allowed when raising cash through equity markets.
The Commission plans to begin a public consultation on how to tackle this distortion and officials say that the European Union’s executive arm will come up with a proposal in 2016.