Germany Backs Down on Tax Demand for Compensation Payments

THE DAILY TELEGRAPH: Germany has backed down on a controversial demand that former slave labourers for the Nazis should pay tax on pensions paid to them as compensation after protests from Belgium and Holland.

Belgium first contacted Germany a month ago to express its fury after "morally indefensible" tax bills were sent to victims of the Nazi forced labour programme during the Second World War.

After initially failing to respond, Berlin was forced to abandon the policy after Belgium threatened to raise the issue during emergency eurozone talks on Nov 30.

A spokesman from Germany's finance ministry on Monday announced that emergency legislation would be passed on Friday to make sure that the pensions would remain tax-free.

"This problem no longer exists, or at least will no longer exist very soon," he said. » | Bruno Waterfield, Brussels | Monday, November 21, 2011

Related »