Brussels, 22/03/2002 (Agence Europe) - On Friday, the Commission decided to refer France to the Court of Justice for its refusal to apply the reduced rate of withholding tax on income derived from investments and contracts where the debtor is not resident or established in France, whereas this facility is available in respect of debtors in France. The Commission has also decided to formally request Spain to alter its legislation on the different tax arrangements for capital gains from shares traded on the Spanish stock exchanges and capital gains from shares traded on the stock exchanges of other Member States. Shares of companies not established in Spain are subject to a less favourable tax regime than shares of Spanish companies. The Commission believes that the French and Spanish systems are contrary to the principles of freedom to provide services and freedom of movement of capital.