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EC consults on venture capital tax obstacles

The European Commission (EC) has launched a public consultation on tax problems that can arise when venture capital is invested across borders.

These funds can be faced with the issue of potential double taxation as a result of mismatches between the tax systems of the 27 member states of the European Union.

Businesses are expected to benefit from the move, as the EC started a Communication that this project is a part of in the hope of improving access to finance for enterprises.

Commissioner for taxation, customs, anti-fraud and audit at the EC Algirdas Semeta underlined the fact that venture capital is an essential source of finance for many firms - and innovative start-ups in particular.

"It is therefore the collective responsibility of the Commission and member states to find solutions to tax obstacles that hinder cross-border venture capital within the EU," he commented, adding that small businesses are the backbone of the continent's collective economy.ADNFCR-1898-ID-801423090-ADNFCR

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