EU Wants Comments On Tax Treatment Of Equity Finance

July 2, 2021, 12:48 PM

The European Union is seeking comments through Oct. 7 on a plan to give companies an equity-finance tax break, it said Friday.

Currently, most EU countries allow companies to deduct the costs of loans from their tax bills, but not the costs associated with issuing stock, leading to a bias in favor of loan financing, the European Commission said in a consultation document. Critics argue that the bias leads companies to load up on debt, leaving them vulnerable in a crisis.

  • The commission, the EU’s executive, said it would propose an equalization of the tax treatment of equity and ...

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