AccessMyLibrary provides FREE access to millions of articles from top publications available through your library.
European Community Finance Ministers Agree on Direct Tax Measures
On July 23, 1990 the European Community's (EC) Council of Finance Ministers formally adopted three corporate tax directives. This action was the formal adoption of the political agreement reached on June 11, 1990. These directives, which have been a point of controversy for the past 21 years, are designed to eliminate the risks of double taxation on crossborder operations.
As more fully explained below, the package includes:
* The prohibition of member states from
imposing a withholding tax on profits
distributed by a subsidiary in its territory
to a parent company located in another
member state (the so-called parent-subsidiary
directive). * A delay in taxing capital gains when
mergers, spin-offs, and contributions of
assets occur that involve companies in
different member states. * The establishment of an arbitration panel
to settle conflicts between tax authorities
over the double taxation for a specific