Gary Richards (Mishcon de Reya) outlines the potential impact of the recent Brisal and KBC Finance Ireland case on the UK, which is complicated by the EU referendum result.
The question in Brisal-Auto Estradas do Litoral SA and another v Fazenda Pública (Case C-18/15) was whether withholding tax on (gross) interest paid to a non-resident lender was permissible under EU law whereas tax that was collected later (and not via withholding) from resident lenders albeit at a higher rate was only taken from their net (after expenses) profit. More precisely:
whether deducting tax at source infringed the non-resident lender’s freedom to provide services;
whether a non-resident’s freedom was infringed because the domestic law prevented non-resident lenders deducting attributable costs in computing the amount on which tax was paid;
whether the tax base for...
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Gary Richards (Mishcon de Reya) outlines the potential impact of the recent Brisal and KBC Finance Ireland case on the UK, which is complicated by the EU referendum result.
The question in Brisal-Auto Estradas do Litoral SA and another v Fazenda Pública (Case C-18/15) was whether withholding tax on (gross) interest paid to a non-resident lender was permissible under EU law whereas tax that was collected later (and not via withholding) from resident lenders albeit at a higher rate was only taken from their net (after expenses) profit. More precisely:
whether deducting tax at source infringed the non-resident lender’s freedom to provide services;
whether a non-resident’s freedom was infringed because the domestic law prevented non-resident lenders deducting attributable costs in computing the amount on which tax was paid;
whether the tax base for...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")