A headline item in the European Commission’s Omnibus on Direct Taxation is the introduction of an exemption from withholding tax on all cross-border payments of dividends, interest, and royalties between companies in the EU which it says should give EU taxpayers savings and benefits of around €5.3 billion annually. Please outline the current inefficiencies in this area and whether the current proposals are likely to achieve their goal of ‘boosting financing, encouraging investment and enhancing competitiveness’ in the Single Market.
