THE EUROPEAN commission has decided to go ahead with a legal battle against Portugal for failing to put an end to discriminatory taxation on dividends paid to foreign companies.
The prosecution case, was sent to Lisbon last week after Portugal ignored a request on July 25, 2006, to alter financial legislation allowing a higher taxation rate to be levied on dividends paid out to foreign companies.
The European Taxation Commissioner, Lászlo Kovacs said that EU member states could not set higher taxation rates on dividends for other EU countries than were set in their own country.
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