Brussels, 25/10/2000 (Agence Europe) - The European Commission started an infringement procedure against Austria to stop the fiscal discriminations suffered by foreign investment funds in the country. The taxation rules applicable to taxpayers (individuals and companies) varies, in fact, according to whether the revenues or the value increase in capital are from Austrian or foreign investment funds, and certain tax benefits are reserved to Austria funds. "This situation damages the investment funds from other Member States, which commercialise their products in Austria", explained on Tuesday the spokesperson for Frits Bolkenstein, European Commissioner responsible for the Internal Market. "It is a flagrant case of the violation of the free provision of services and the free movement of capital".
The European Commission decided to send a motivated opinion (second stage in the infringement procedure) to the Austrian authorities, which have a two month period to react. In the absence of a satisfactory answer, it could then refer to the European Court of Justice. This move follows a complaint from the Austrian association of investment funds, the "VIAO" (Vereininingung auslandisher Investmentgesellschaften in Osterreich). Two rather similar cases of tax discrimination in the field of the stock markets had already brought, in 1998, the Commission to open infringement procedures against France and Italy. After the sending of the motivated opinion in October 1999, these two countries had modified, at the end of December 1999, the incriminated legislative provisions.