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Image header Agence Europe
Europe Daily Bulletin No. 9361
Contents Publication in full By article 16 / 34
GENERAL NEWS / (eu) eu/state aid

Investigation opens into Danish plans to modify “tonnage tax”

Brussels, 07/02/2007 (Agence Europe) - On Wednesday, the European Commission opened an in-depth investigation concerning Danish plans to change its flat-rate tonnage-based tax scheme (tonnage tax). The Danish tax authorities plan to drop the requirement on companies benefiting by this tax regime to send financial information on their transactions with their overseas subsidiaries to the authorities. Denmark hopes for the Commission's green light on this change to be made to the current regime. The notified measure should not normally alter either the level of aid received by Danish maritime transport companies, or the budgetary impact of the regime for the Danish State. Nonetheless, the Commission took the view that the change could negate one of the control measures attached to the regime, namely the monitoring of commercial transactions between companies subject to this scheme and their subsidiaries. It takes the view that the anti-abuse measures it imposes in all tonnage tax regimes within the EU “are essential to ensure that these very favourable taxation measures are not extended to activities other than maritime transport”. For this reason, it has decided to open an investigation with a view to obtaining the opinion of any interested third parties, particularly those of the tax authorities of the other member states. (ol)

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