Brussels, 19/09/2008 (Agence Europe) - On Thursday 18 September 2008, the European Commission decided to launch a series of infringement proceedings for failure to comply with EU taxation rules.
VAT: - Greece has been sent two reasoned opinions for failure to communicate the transposition into domestic law of Council Directive 2006/69/EC on measures to simplify VAT collection and combat tax evasion, repealing various decisions granting derogations, and Council Directive 2006/112/EC on the common value added tax system.
Direct taxation: - Portugal is being taken to the European Court of Justice because of discriminatory tax rules whereby non-resident companies supplying services in Portugal are subject to taxation at source calculated on gross income, but Portuguese suppliers of services are taxed on net income. The Commission believes these rules are incompatible with the EC Treaty, which guarantees freedom to supply services; - Portugal is being sent a reasoned opinion urging it to amend discriminatory rules that tax winnings from foreign lotteries while winnings from lotteries in Portugal, Euromilhões and Liga dos Milhões, organised by 'Santa Casa da Misericórdia de Lisboa' are tax-free; - Ireland is being sent a reasoned opinion urging it to amend the discrimination arising from tax excemption for interest on Irish state savings certificates and the possibility of tax exception for certain gilts and bonds guaranteed by the state while interest on similar foreign gilts, bonds and certificates are subject to tax. The Commission believes that these measures are incompatible with the free circulation of capital guaranteed by the EC Treaty; - Sweden is being sent a reasoned opinion urging it to amend tax rules whereby companies no longer taxable in Sweden have to pay an exit tax. The Commission believes such a measures is incompatible with the freedom of establishment guaranteed by the EC Treaty and the European Economic Area agreement; - Greece is being sent a reasoned opinion urging it to amend regulations hereby permanent residents of Greece are granted tax exemptions when buying their first home but such exemptions are not granted to purchasers who do not yet live permanently in Greece but who intend to move there. Greece is also urged to scrap discriminatory rules whereby exemption is sometimes granted from certain property taxes for the purchase of a first home in Greece that applies to Greeks living abroad but not to other nationalities living abroad. The Commission believes such tax exemptions violate the ban on discrimination, the free circulation of individuals and the freedom of establishment set out in the EC Treaty and the European Economic Area agreement; - the United Kingdom is being sent a reasoned opinion urging it to correctly implement a European Court of Justice ruling on the cross-border transfer of losses in the Marks & Spencer case. In legislation to implement the Marks & Spencer ruling, the criteria imposed by the UK for the cross-border compensation for a group's losses make it virtually impossible for tax payers to benefit from them and the Commission therefore believes such criteria run counter to the EC Treaty. (O.L.)