Brussels, 25/06/2009 (Agence Europe) - On Thursday 25 June 2009, the European Commission decided to pursue infringement proceedings against various Member States over direct and indirect taxation issues.
Savings tax. Luxembourg will have to explain at the European Court of Justice why it has been applying in what is deemed to be an incorrect manner various EU savings tax measures. Luxembourg does not retain tax at source on interest on savings for savers who are 'non-domiciled' in their country of residence. Such an attitude is considered as being counter to Directive 2003/48/EC. Taxation of banking interests. The Commission considers as discriminatory the Belgian legislation which exempts from taxation interests paid by Belgian banks to individuals up to €1,660, while interests paid by foreign banks do not enjoy the same exemption. It sends a reasoned opinion to Belgium calling for its national legislation to be amended. Taxation of pension funds. A) Finland will be receiving a reasoned opinion calling for it to amend its tax law because it taxes its national pension funds less than those established elsewhere in the EU. B) Denmark taxes dividends from foreign pension funds at 15% of their gross amount, while dividends generated by Danish pension funds are taxed only on the basis of their net amount. Danish authorities are invited, through reasoned opinion, to amend their legislation. Taxation of benefits from share swaps. Spain taxes benefits made from an exchange of shares at the time they are made, when the company having invested in the capital of another company is established on its territory. When acquisition is carried out by a company located outside Spain, taxation comes earlier, from the share swap operation. According to the Commission, this difference in treatment is incompatible with Directive 90/434/EEC on merger taxation, company division, transfers of assets and exchange of shares concerning companies of different member states. Motor tax. The Commission will be sending a letter of formal notice to Romania whose tax law is said to discriminate against second hand cars imported from other member states. In force since February 2009, Romanian legislation exempts from vehicle pollution tax “Euro 4” vehicles and vehicles with a cylindrical capacity below 2000 cm3 registered in the EU over a certain period, whereas it doubles the amount of this tax for all other private cars. Although European jurisprudence authorises different taxation for similar products on the basis of objective criteria, the European institution fears that these rules will promote the national automotive industry. VAT. A) With a reasoned opinion, the Commission calls on Portugal to amend its tax law that is said to be to the disadvantage of agricultural producers that have chosen a flat rate scheme. Portuguese rules do not comply with the VAT Directive 2006/112/EC. B) The United Kingdom will be receiving a reasoned opinion from the Commission calling on it to amend it legislation that uses criteria different to those of Directive 2006/112/EC to exempt from VAT the provisions of products and services for the fuelling and provisioning of aircraft. The European institution bases its action on European jurisprudence (Case C-380/02). (M.B./transl.jl)