Brussels, 26/04/2012 (Agence Europe) - On Thursday 26 April, the European Commission sent reasoned opinions (warning letters) to Spain, Belgium and Bulgaria, whose tax legislation breaks EU rules. All three may be sent to the European Court of Justice if they fail to respond to the warnings within two months.
Spain. The Commission says that the penalties issued by the Spanish tax office (a 10% tax increase and a fine of at least €600) are disproportionate when the actual journey time of goods subject to the duty-free system is longer than specified by the operator in the e-document describing the goods for tax purposes.. The Commission says such differences in duration have nothing to do with any attempt to commit fraud and do not prevent proper control of the goods subject to duty.
Belgium. The Commission says that Belgium's inheritance law in Wallonia and the Region of Brussels-Capital is discriminatory, as is Belgian company law. The first allows people to choose a court to decide what inheritance tax should be levied on, but this is restricted to shares quoted on the Belgian stock exchange, which amounts to an unjustified restriction on the free movement of capital. Belgian company tax grants a tax credit of up to €3,750, but not for non-residents generating profit through a company registered in Belgium. This means that non-Belgian companies doing business via a subsidiary and making a profit in Belgium could well have to pay higher tax, which amounts to a restriction on the freedom of establishment.
Bulgaria. Sofia must levy VAT on public sector bailiffs. At present, only freelance bailiffs have to pay VAT and this unlevel playing field is incompatible with EU VAT rules, which require public bodies acting as public authorities to pay VAT, says the Commission. (FG/transl/fl)