|
 European Commissioner Algirdas Semeta unveiled a plan Monday to stop
companies avoiding taxes on subsidiaries' dividends in some EU
nations because local laws classify the dividends as debt payments.
Semeta also wants to bar companies, including U.S. and other foreign
multinationals, from using bookkeeping tricks to shift profits out
of higher-tax jurisdictions to shell companies or letterbox
affiliates in lower-tax countries.
Semeta's spokeswoman, Emer Traynor, said: "We want to be global
leaders in the fight against tax avoidance."
EU finance ministers still must discuss the proposed changes.
Implementing them may be difficult. All members of the 28-country
European Union would have to be in favor. [Associated
Press]
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