Last week, Kevin Brady, Chairman of the House of Representatives Ways and Means Committee, issued a statement welcoming the “abandonment” of the European Union’s proposed digital services tax. However, I think that was a piece of wishful thinking on the Texas Republican’s part. The EU rarely abandons anything, least of all high priority tax initiatives. I refer you to the common consolidated corporate tax base (currently gridlocked) and the financial transaction tax (back from the dead).
However, that France, Germany, and Austria (which currently holds the EU presidency) were last week prepared to accept a watered-down digital tax proposal in return for an agreement was an indication of just how strongly certain member states (notably Ireland, Sweden, and Denmark) oppose the idea, and therefore just how unlikely it is to be implemented in its original form.
The compromise text argued that the … Read More »
On November 26, a legal challenge brought by 13 UK expats against the decision of the EU Council to endorse the start of negotiations with the UK on exiting the European Union was rejected by the General Court of the EU. So is Brexit now an unstoppable force? Perhaps the only question left is what sort of Brexit will it be? Prime Minister May’s EU-lite? Canada +++? The Norway option? WTO rules?
The possibility of another referendum on the matter remains, although the chances are slim. What is crystal clear however, is that the waters are now as muddy as ever. So much so that businesses have largely given up attempting to plan for Brexit. At least, that is the conclusion drawn from a survey by accountants Moore Stephens of Brexit preparedness within the business community.
According to the firm, since last … Read More »