Brussels, 26/11/2010 (Agence Europe) - On 24 November 2010, the European Commission decided to launch a raft of infringement proceedings against member states for failing to respect EU tax laws.
Belgium has been sent to the European Court of Justice over discriminatory rules on pension plan contributions. Under Belgian law, tax incentives are only granted for pension plan contributions to Belgian companies or (for collective funds invested in) Belgian pension funds. The Commission believes these measures run counter to the European Union rules on the freedom to supply services and the free circulation of capital and sent Belgium a reasoned opinion in this connection in March 2010. It has decided to send the country to the Court of Justice because it has not complied with EU rules within the given deadline. Belgium has also been sent a reasoned opinion requesting it to put a stop to discrimination in taxation against certain share dividend. Belgium levies an additional tax on dividend and interest paid by non-Belgian intermediaries to Belgians investing outside the country. Belgium now has two months to meet this request, failing which it may be sent to the Court of Justice (third stage in the infringement proceedings).
Denmark, the Netherlands and Spain are being sent to the European Court of Justice because of the exit tax they levy on companies transferring their tax headquarters to another country. The Commission believes this tax is incompatible with the freedom of establishment (Art. 49 of the Treaty on the functioning of the European Union) and sent the three countries reasoned opinions (the second stage in the infringement proceedings) in March 2010, but they failed to comply with EU rules on time and are therefore being sent to court. Spain is also being sent to the Court of Justice over its tax rules requiring certain non-resident taxpayers (like pension funds and insurance companies registered for tax in another company but providing services in Spain) to have tax representatives in Spain. This is discriminatory treatment that falls foul of the freedom to supply services set out in Article 56 of the Treaty on the functioning of the European Union (TFEU). The Commission sent Spain a reasoned opinion in January 2010 and is now moving to the next stage in the proceedings because Spain has failed to take measures to ensure it complies with EU legislation.
France is being taken to the Court of Justice because it has failed to change its electricity tax scheme within the necessary deadline to comply with an EU directive of 2003 restructuring the EU energy tax rules. The current French local electricity tax rules do not comply with the directive because they allow different tax rates to be applied in different localities so that there is a postcode lottery on consumers for electricity tax depending on where they live. The Commission has therefore decided to take France to court. (F.G. trans fl)