P524 Teletext 526 Jan 2 00:10:01    —————  ———————  ——————————————————— TIP TOP TAX HARMONISATION The subject of tax harmonisation has been as prominent as any in the UK in the run-up to the start of the euro. As Maurice Fitzpatrick of Chantrey Vellacott DFK says, the difference between Europe and the US, which has varying state sales taxes is that "distances are much shorter in Europe". In other words, a French person can buy childrens clothes in Kent and a Briton can buy beer in Calais. ——————————————————————————————————1/5—— by Mark Meadowcroft Download and Analyse Share Prices on Your PC See p533-537 Next Savings Sport shares City
P524 Teletext 526 Jan 2 00:11:01    —————  ———————  ——————————————————— TIP TOP TAX HARMONISATION Maurice Fiztpatrick of accountancy firm Chantrey Vellacott DFK says that tax harmonisation would be an important issue even without the euro. "It's almost a two-track problem. It would probably happen without the euro, but the arrival of the single currency has probably accelerated it." In other words, countries in a single market in close geographic proximity to each other have to face the issue. ——————————————————————————————————2/5—— Preparing business for the euro 523 CITY NEWS p500 Next Savings Sport shares City
P524 Teletext 526 Jan 2 00:11:00    —————  ———————  ——————————————————— TIP TOP TAX HARMONISATION Chantrey Vellacott DFK partner Maurice Fitzpatrick says that UK tax rates are generally lower than those pertaining across the "Euroland" countries. "British tax rates overall are significantly lower than the Euroland average," he says. But this masks variations. UK direct taxes, like income tax, are certainly low but "indirect" taxes like tobacco and alcohol duties are often higher. ——————————————————————————————————3/5—— Euro football vs tradition 527 POPULAR SHARE CHECK p519 Next Savings Sport shares City
P524 Teletext 520 Jan 2 00:01:41    5j÷5} 5j}175 ————— ——————— ——————————————————— TIP TOP TAX HARMONISATION This leads to the@lpjor ——tamla f!ced by politicians dealing with tax in the single currency !pea. On the one hand, they wish to retain in running the economy. But if the UK is in a single l—rket, w—ich it has been for years, it cannot stop people brxjng from the lowest tax part of the l—rket and causing distortions to the aconomy. ——————————————————————————————————4/5—— Slow road to Euroland 522 POPULAR SHARE CHECK p519 Next Savings Sport shares City
P524 Teletext 526 Jan 2 00:11:11    —————  ———————  ——————————————————— TIP TOP TAX HARMONISATION This leads to the major dilemma faced by politicians dealing with pax in the single currency area. On the one hand, they wish to retain control of tax policy, a vital lever in running the economy. But if the UK is in a single market, which it has been for years, it cannot stop people buying from the lowest tax part of the market and causing distortions to the economy. ——————————————————————————————————4/5—— Slow road to Euroland 522 POPULAR SHARE CHECK p519 Next Savings Sport shares City
P524 Teletext 526 Jan 2 00:10:10    —————  ———————  ——————————————————— TIP TOP TAX HARMONISATION Accountant Maurice Fitzpatrick admits that "nobody really knows the answer" to the harmonisation riddle. "It does seem likely, though, that the single currency will need some tax harmonisation to work properly." He concludes by saying: "There will be a drive for it in the core countries." These countries, like Belgium, Holland and Luxembourg, are geographically the closest to each other in Euroland. ——————————————————————————————————5/5—— Tax tables return next weekend POPULAR SHARE CHECK p519 Next Savings Sport shares City