The European Commission said on Thursday (25 June) it was taking Luxembourg to court over concerns the Grand Duchy is breaching EU rules on savings revenues and using a so-called non-domiciled status for tax avoidance. The commission is accusing Luxembourg of using the status in order to get around the EU Savings Tax Directive on savings interest payments. Luxembourg has repeatedly been criticised for its bank secrecy rules Under the EU directive, member states must exchange information on non-resident savings revenues. Those countries who have not signed up to it - namely Belgium, Luxembourg and Austria - can tax the income at source. But the commission considers Luxembourg to be breaching that rule as well by not applying the directive to people who benefit from the "non-domiciled resident" status in their country of residence.
The European Commission said on Thursday (25 June) it was taking Luxembourg to court over concerns the Grand Duchy is breaching EU rules on savings revenues and using a so-called non-domiciled status for tax avoidance.
The commission is accusing Luxembourg of using the status in order to get around the EU Savings Tax Directive on savings interest payments.
Luxembourg has repeatedly been criticised for its bank secrecy rules
Under the EU directive, member states must exchange information on non-resident savings revenues. Those countries who have not signed up to it - namely Belgium, Luxembourg and Austria - can tax the income at source.
But the commission considers Luxembourg to be breaching that rule as well by not applying the directive to people who benefit from the "non-domiciled resident" status in their country of residence.
Luxembourg simply works in favour of an efficient growth-producing market economy, and is not cruel to hamsters banksters.
Fixed.
