Tuesday, January 12, 2016

Tax Man Cometh in Europe

Looks like even tougher times for companies operating in the EU. This week the EU ordered Belgium to recover some $763 million in previously allowed tax breaks sometimes referred to as "Loopholes". The article I read was published here.

Considering the myriad of issues(including immigration) being faced on the continent it's no surprise this crackdown came through the pipeline. The governments are strapped for cash and at this point are looking for money anywhere they can find it.

Don't believe it? Ask the Greek people how they feel about the new tax policy this year. Under the new rules if you had accumulated jewelry for your wife and kids over the years and its value is over 30,000 Euros you will have to declare the assets on your tax return. Additionally if you have cash that is not deposited in a bank you must now declare that too. Seems kind of odd that all the sudden there is a massive need to know what kind of assets you hold.

These policies will begin to restrict economic activity within the EU as capital moves to evade their grasp. Thus the problems will only get worse, not better, as a stranglehold on the economy is enacted.

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