Latvia

responds to European Commission's letter of formal notice regarding taxation of interest

It has been reported that, on 5 June 2008, the European Commission sent Latvia a letter of formal notice (the first step of the infringement procedure under Art. 226 of the EC Treaty) regarding its discriminatory rules on the deductibility of interest paid to non-residents (case No. 2007/2459). In its position, adopted on 29 July 2008, the Latvian government acknowledged that Latvian…