Taxation and corporate strategy in the single market
Journal of Financial Regulation and Compliance
ISSN: 1358-1988
Article publication date: 1 March 2004
Abstract
In order to realise economies of scale in the European single market for investment funds, asset managers have typically sought to distribute a single range of investment funds into as many European markets as possible. They have therefore developed an ‘offshore’ business model: of establishing a single fund range in, say, Luxembourg or Dublin, and distributing that range throughout the EU. European legislation has evolved in support of that business model ‐ in particular, the UCITS Directive. However, persistent tax discrimination continues to undermine cross‐border sales. Tax discrimination is illegal, and the European Court of Justice has regularly ruled against countries with discriminatory fiscal regimes. The vagaries of the judicial process, though, and recent jurisprudence, may unwittingly lend strength to discrimination. Should asset managers therefore revisit their offshore business model, or should European institutions revisit the way they address issues of taxation in the Union?
Keywords
Citation
Barker, T. (2004), "Taxation and corporate strategy in the single market", Journal of Financial Regulation and Compliance, Vol. 12 No. 1, pp. 45-50. https://doi.org/10.1108/13581980410810678
Publisher
:Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited