Luxembourg business leaders ambivalent about automatic exchange of information
(CS) While Luxembourg business leaders surveyed for the latest Luxembourg Business Compass believe that the automatic exchange of information will be bad for the financial centre, they are more ambivalent when it come to the political impact and effects on their companies.
The development of Luxembourg's tax environment received a thumbs down from top decision-makers at the Grand Duchy's most important businesses, with 60 percent saying that the situation has “gotten worse” over the past two years.
This number was at just 42 percent in the last survey in October 2013.
One major aspect playing into this assessment was the automatic exchange of information, with 59 percent saying that it will have a negative impact for the financial centre. Less than a quarter believe it will have a positive effect.
However, a strong majority of 62 percent believe in the political benefits of the decision to enter adopt automatic exchange of information policies.
Little impact on companies
When asked about the effect the measure will have on their own companies, business leaders were largely calm, with 60 percent saying the effects will be neither positive nor negative.
The results were slightly more nuanced for financial companies, where less than half believed that the impact would be neither negative nor positive, compared to a quarter who expect a positive impact and 29 percent who anticipate negative ramifications.
The Luxembourg Business Compass is a bi-annual study commissioned by KPMG Luxembourg. It polls business owners, CEOs, COOs, CFOs or other senior management employees among Luxembourg's top companies by contribution to GDP and staff numbers.
The results of the April 2014 edition will be presented in full at an invitation-only event hosted by KPMG on May 13.
Don't miss out on the news – sign up to receive the