This month’s column is dominated by action emanating from the EU throwing into focus its ever growing influence over the tax regimes of Member States. The EC has requested the UK amend two anti-avoidance measures. Jersey and the Isle of Mann are defending their Zero Ten regimes. German rules on loss carry forwards for ailing companies have been found to contravene State Aid rules. An EC consultation on certain dividend withholding taxes has been launched. A new directive on the administrative co-operation in the field of direct taxation has been published. Outside the EU, President Obama has released a proposed 2012 Budget in the US.
