The tax systems of several countries recently fell foul of EU Treaties’ requirements.
The Commission has requested the UK to further amend its treatment of controlled foreign corporations (CFCs). It is not happy that the ECJ ruling in the Cadbury Schweppes case is being fully complied with, in respect of EU law on freedom of establishment and free movement of capital.
The Spanish infringement appears more straightforward, with an inappropriate rate allegedly being applied to devices to assist disabled animals.
Italy has an issue with the Commission on the provisions of the VAT Directive on exemptions for ships.
The Commission notes that France does not grant a withholding tax exemption on dividends distributed by French companies to pension and investment funds established in the EU, whereas it does grant such an exemption if the pension and investment funds are established in France.
Belgium apparently has created two sets of infringements derived from a single issue, the distinction arising from a difference in the application of the law in the Wallonia region versus the rest of the country.
More information here.