Brussels, 17/10/2006 (Agence Europe) - The Commission has sent a reasoned opinion to Spain for not respecting a Court ruling on taxation of stock market capital gains. It also sent one to Ireland and Poland for financially discriminating against foreign charities. Greece received a reasoned opinion with regard to dividends paid out by foreign companies.
Stock market capital gains. The Commission believes that Spanish legislation continues to apply a 25% tax rebate on capital gains from company shares quoted on national stock markets and bought before the end of 2004 while company capital gains from shares quoted on stock markets in other Member States only get a 14.28% tax rebate. The EU Court of Justice has already ruled on this affair (decision C-219/03) and found that Spain had infringed the principles of free movement of services and capital. On the basis of Article 228 of the European Treaty, the Commission is relaunching a new infringement procedure that cold get the Court to impose a fine on this country.
Charities. Ireland and Poland will receive a reasoned opinion requesting that they end tax discrimination penalising foreign charities. These two countries only exonerate gifts made by charities established on national territory. The Commission considers that this difference in treatment is contrary to the rules of the European Treaty and decision C-386/04 of the Court in the “Centro di musicologia Walter Stauffer”.
Dividends paid out by foreign companies. The Commission has sent a formal letter of notice to Greece requesting it end tax discrimination penalising companies established in other Member States. Greece exonerates taxes on income from dividends paid to individual investors by Greek companies but taxes the dividends paid out by foreign companies. The Commission believes that this difference in treatment constitutes a restriction of the free movement of capital and is contrary to the “Verkooijen” ruling (C-35/98/EC). (mb)