Article Abstract:
British chancellor, Gordon Brown, plans to halt usage of a tax-avoidance device called an 'offshore mixer'. The changes mean that multinationals which remits subsidiaries profits to Britain could pay an additional 100 million pounds sterling annually. Companies may remit profits in this way to pay dividends, and offshore mixers are companies used as conduits for foreign subsidiaies' dividends. There is a debate as to how much extra multinationals will have to pay, with Pricewaterhouse Coopers estimating an annual cost of several billions.
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Article Abstract:
Germany plans to change tax laws affecting companies, with the elimination of capital gains tax when equity stakes are sold by German firms in other firms. This measure was announced as part of a wider package of tax reforms, which may be because it is politically controversial, so they may have been hope that it would attract less attention in that way. This could create opportunities for foreign investors, and lead to an increase in acquisitions and mergers in Germany.
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Article Abstract:
Germany failed to pass a tax reform initiative, and its economy continues to struggle with 11% unemployment, heavy tax evasion, and lower foreign investment. Pressure from lobbyists and Social Democrats is keeping Germany from reforming its tax system.
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