The Financial Times published a thought-provoking article this morning that looks at a new tax introduced by the Austrian government last year. The new 25 percent levy on capital gains from stocks, bonds and other financial instruments aims to reduce the country's deficit by increasing state revenue.
Today's FT article takes a look at the industry's reaction to the new levy and suggests that although the objective of the tax levy is widely accepted, the details of implementing it have so far been operationally very complex.
Stefan Walter, Managing Partner at RSM Exacta, the RSM member firm in Vienna, told the FT that he has a similar take on the issue. Stefan says, "The stated objective was a fair, easy-to-administer and widely acceptable solution for taxing capital gains, and that goal was unfortunately missed." Stefan thinks that Austria should persuade domestic investors to bring more of their assets into the country, through beneficial terms, in order to bring more revenue from wealth tax.
Read the full article on Austria's taxation dilemma on FT.com