Saturday, May 3, 2014

CROSS BORDER TAXATION in THE EUROPEAN UNION - DOUBLE TAXATION



Introduction.  If income is coming from one European State when one is resident in another State The various rules relating to Double Taxation can be far from benign.  The Double Taxation rules can actually increase the amount of tax paid by an individual.
If you are British and a retired from Teaching - Military service, Police, Fire service, Local or National Government work, and some positions in the Health Service, then this  consultation concerns you. 
 Taxation and reinforcing the single market for EU citizens
The European Commission (EC) has launched three initiatives to gather ideas to remove tax obstacles that hinder the ability of individuals to move within the single market of the EU. There are two consultations. One covering the tax issues citizens encounter when they actively move between member states, the other covering Inheritance Tax (IHT) issues. Additionally on expert group is being set up with the aim of gathering ideas to deal with taxation obstacles that get in the way of cross border activity. The feedback will then allow the EC to look at solutions to any problems that are highlighted

Some of the matters intended to be covered by the expert group include:
  • Taxation obstacles to free movement.
  • Personal  income tax and IHT, but the group may look at other areas such as vehicle  taxation and  e-commerce where this impacts on the individual.
  • Tax declarations in more than one State.
  • Double Taxation Treaties.
  • Working in other countries in the EU,
  • Investing in other member states.

The links to the relevant websites are provided below. These all originate with the EU Commission.

1.  Call for applications to participate in the expert group:

2.  Public consultation on tax obstacles:

3  Public consultation on inheritance taxation:

4. A website has been set up to provide helpful information to individuals affected by cross border taxation –

WHAT YOU CAN DO –
1.   Private Citizens can respond to items 2 and 3.  If you have factual important detail to impart please do so.

2.  Those of you who use accountants or other professional advisors.   You will probably find it helpful to forward this mail to him/her.

 NOTE WELL – The consultations  finish on 3rd July 2014
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The web site link below has various references to the problems affecting taxation of expatriates in France and Europe. Go to the Index....
scroll down to the heading TAXATION and DOUBLE TAXATION.