Brussels, 18/02/2003 (Agence Europe) - The European Commission has unanimously supported Commissioner Monti on special tax breaks in Belgium, the Netherlands and Ireland, by adopting three negative decisions (see Europe of Saturday 15 February, p. 9). The tax measures under scrutiny concern the Co-ordination Centres scheme in Belgium, the International Financing Activities scheme in the Netherlands and the Foreign Income scheme in Ireland. Tuesday's decisions are part of the global fight against prejudicial tax competition launched in 1996 on Mr Monti's initiative. Out of the fifteen systems examined since July 2001, nine cases have been closed, in addition to the three decisions currently under examination. More specifically: a) Co-ordination Centres (Belgium): the system was judged to be in compliance in 1984, but is being re-examined in the light of new rules on state aid (see EUROPE of 1 March 2002, p. 18). The Commission has just concluded that the system does not comply and has demanded that Belgium grants it to no more new beneficiaries with immediate effect, and that it withdraws it for beneficiaries between now and 2010. As the Commission had originally approved the system, the beneficiaries are not obliged to pay back aid already received; b) International Financing Activities (Netherlands): the scheme was started in 1996 without prior notice. It allowed multinational companies active in more than four countries or in more than two continents to place up to 80% of their foreign-source financial profits in a tax-free risk reserve for a period of ten years. The Commission believes these measures to be not in compliance and has asked the Netherlands not to apply them to new beneficiaries with immediate effect, and to end the system altogether in 2010; c) Foreign Income Scheme (Ireland): This scheme consists of two measures abolished in 2001. The first measure exempts foreign dividends from taxation, where the dividends are used for investments that create or save jobs in Ireland. The second exempts the profits of foreign branches from Irish tax, where these profits have the same employment objectives. Under certain conditions, these measures provided extra tax benefits which were judged not in conformity. However, the aid granted does not have to be paid back.