Brussels, 22/03/2005 (Agence Europe) - The Commission has decided to take action at the Court of Justice against Greece for failing to make its tax legislation comply with Community law. Furthermore, it is soon to send a reasoned opinion to the United Kingdom to inform it of the measures taken concerning the application of European law - in Gibraltar - on the imposition of interest payments and fees.
Despite the formal request received from the Commission (see EUROPE of 14 January, 2005), Greece has not made the changes required to its national law 1676/86. This legislation makes it compulsory for companies that transfer their registered seat or effective management towards Greece to pay capital duty when the transfer does not give rise to the levying of this duty in another Member State. It also exempts agricultural and maritime companies. The Commission considers that Law 1676/86 runs counter to Directive 69/335/EEC on indirect taxation on capital. The European legislation does not allow capital duty below 1% to be paid except when a corporate enterprise is being created, and does not authorise exemption for any sector of activity.
The Commission considers that the United Kingdom has not yet implemented, in Gibraltar, Directive 2003/49/EC on the common tax regime applicable to the payment of interests and fees between associate companies of different Member States. Such implementation should have taken effect on 1 January 2004. The United Kingdom has two months in which to notify measures taken to the Commission.