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  3. EC Takes Issue Over Belgian Tax Treatment Of Foreign Charities

EC Takes Issue Over Belgian Tax Treatment Of Foreign Charities

by Ulrika Lomas, for LawAndTax-News.com, Brussels

27 December 2006


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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