Brussels, 16/05/2007 (Agence Europe) - On Wednesday 16 May, the European Commission decided to send a reasoned opinion to Portugal. In 2005, this member state decreed a tax amnesty on undeclared funds held abroad. Investments in Portuguese state government bonds were regularised at a preferential rate of 2.5%, whilst all other financial bonds were taxed at 5%. The Commission takes the view that this financial provision goes against the free movement of capital and calls on the Portuguese authorities to apply the same tax treatment to all regularisations carried out in 2005. By default, it may bring the matter before the Court of Justice of the EU.
“The rules of the Internal Market forbid any discrimination of investments made by individuals in other member states”, notes European Commissioner for Taxation László Kovács in a press release. He goes on to add: “Investment held in other member states should be taxed in the same way as investments held in the member state of residence, even on the occasion of tax amnesties”. (mb)