Reuters has reported that:
International lenders would like Cyprus to raise its corporate tax and introduce a levy on capital gains and a financial transaction tax to ensure it can repay a euro zone bailout it asked for last year, euro zone officials said on Thursday.
So, the price of bailing out a tax haven is that it charges tax. Should anyone be suprised about that?
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Of course the idea that the Cypriot electorate might get a say in those tax rates is out of the question in the brave new world of the EU…..
Sovereignty is so 2008…..
Don’t remember you being so pleased when the EU ordered France to remove the withholding tax on dividends………but then to you taxes are only allowed to go one way!
I think a lender can attach a repayment condition
Labour tried to to Cayman
The Tories let them off
Richard.
you have missed the point, as usual.
Incidentally, I daresay you were one of the people complaining at the Italians voting against austerity. “They might as well vote against gravity” you say, they have no choice. Wrong, they have the chance to devalue or, simply, default, but feel constrained by the € not to do so.
The Cypriots, likewise, could get out of their debt problem by defaulting, but don’t wish to do so.
Unlike the Italians, I see their point. The money is owed mostly to Russian people of limited patience & infinitesimal sympathy.
They don’t have a lot of choice. Do you really think the Germans will say “Oh, jah, carry on cutting our throats even as you have this aid”?
Fair point
My comment was too narrow and focussed on just one issue
Right to take me to task