EC Takes Issue Over Belgian Tax Treatment Of Foreign Charities
The European Commission announced last Thursday that it has sent Belgium a
formal request to end discrimination against foreign charities. Belgium allows tax relief for gifts to charities, on condition that they are
established in Belgium. Charities in other Member States are excluded from the
relief. The Commission stated that it considers that this discrimination is contrary
to the free movement of capital guaranteed by Article 56 of the EC Treaty. The request is in the form of a ‘reasoned opinion’ under Article
226 of the EC Treaty. If Belgium does not reply satisfactorily to the reasoned
opinion within two months the Commission may refer the matter to the European
Court of Justice. The Commission has taken up similar cases against Ireland, Poland, and the
United Kingdom. .
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