Fears grow of pan-European interest relief cuts
German moves spark fears of general cuts to basic principle of European corporate tax
Private equity groups are worried that German moves to limit interest relief
on profits will spread elsewhere in Europe.
The German government has
introduced
rules to limit the use of interest to offset corporation tax bills.
The FT reported Javier Echarri, general secretary of the
European Private Equity and Venture Captial
Association saying: We’re concerned that this might become a pan-European
phenomenon.’
The UK is pondering
various
changes to interest relief rules at present, including proposals to limit
it.
Further reading:
Germany
moves to cut interest relief