Tax Havens Face Pressure From Europe

BRUSSELS -- Under pressure from Germany, the European Union on Wednesday agreed to consider a new clampdown on tax havens, despite the opposition of one country, Luxembourg, which said it saw no reason to change the existing law, The New York Times reported Thursday.

In what is likely to become a lengthy negotiation, the European Commission will propose expanding a directive to ensure that Europeans do not evade taxes on the interest from savings by opening accounts abroad, the paper reported.

Tax havens have been in the spotlight since February, when Germany cracked down on tax evaders. Germany persuaded European finance ministers to speed a planned review of the savings legislation after revelations of tax evasion, the paper reported.

Since then, concern has spread, with the tax authorities in Australia and New Zealand carrying out raids and audits on wealthy residents, the paper reported.

-- NYSSCPA.org News Staff

Posted on 5/15/08