Bonds: EU opens infringement proceedings against Ireland
The European Commission has opened infringement proceedings against Ireland because it says the Government's tax regime discourages Irish residents from buying bonds issued by other EU states.
The European Union has initiated legal action against Ireland, alleging that the country's tax regulations hinder Irish citizens from purchasing bonds issued by other European Union nations. Presently, Irish investors who acquire bonds from the Irish government are exempt from capital gains tax on their profits. Conversely, investors in securities from other EU member states or the European Economic Area face a 33% capital gains tax.
The European Commission contends that this disparity in tax treatment discourages Irish residents from investing in securities issued by other EU member states or the European Economic Area. The Commission's decision is rooted in its efforts to eliminate obstacles within the single market. Consequently, the Commission has dispatched a formal letter of notice to Ireland, granting the nation two months to address the Commission's concerns and rectify any identified issues.
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