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UK: Stop the discrimination of foreign charities
The European Commission has considered a discrimination the fact that the UK allows tax relief only for gifts to charities established in the UK
di Redazione
The European Commission has sent the UK a formal request to end discrimination of foreign charities.
If the UK Government does not reply satisfactorily to the Commission’s request within two months the Commission may refer the matter to the European Court of Justice.
The Taxation & Customs Commissioner, László Kovács, said:
“The rules of the Internal Market forbid discrimination of charities in other Member States. Gifts to bona fide charities in other Member States should get the same tax treatment as gifts made to domestic charities.”
The Commission is arguing that the difference in treatment between gifts made to charities in the UK and charities in other member states:
-constitutes an obstacle to the free movement of capital
-is contrary to the free movement of persons (since workers and self-employed persons moving to the UK might wish to make gifts to charities established in the member state where they came from);
-is contrary to the freedom of establishment (since foreign charities are forced to set up branches in the UK in order to benefit from the favourable tax treatment).
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