Luxembourg, Italy, Portugal and the Netherlands Rebuked By EU Over Insurance Taxes

by Ulrika Lomas, Tax-News.com, Brussels

18 January 2005

The European Commission has initiated infringement proceedings against Luxembourg, Italy, the Netherlands and Portugal for failing to transpose into domestic law a European directive concerning taxes on insurance premiums.

The directive in question was approved in 2003, and amended previous European legislation concerning mutual assistance by the competent authorities of the member states in the field of direct and indirect taxation, which has been extended to cover taxes on insurance premiums.

Member states were required to be compliant with the directive by December 31, 2003 at the latest, but according to the Commission, no measures have been passed at national level to implement the changes in any of the four member states named.

“This Directive is crucial to cooperation between Member States in fighting fraud and ensuring that tax provisions are applied properly,” a Commission statement warned.

Consequently, Italy will be referred to the European Court of Justice, while Luxembourg, the Netherlands and Portugal have received reasoned opinions from the Commission.

Recommended