Latvia responds to European Commission's letter of formal notice regarding taxation of outbound dividends

On 28 February 2008, the European Commission announced that it had sent Latvia a letter of formal notice (first step of the infringement procedure under Art. 226 of the EC Treaty) to amend its rules under which dividends paid to non-resident individuals may be taxed more heavily than those paid to residents. On 15 April 2008, in response to the letter of formal notice, the Latvian government announced that, while its legislation is compatible with EC law, amendments are necessar…