European Commission July infringements decisions

Released 13 July 2017

The European Commission (EC) has published its monthly summary of infringement decisions.

Decisions on Taxation and Customs Union:

Reasoned opinion: France to end the unfavourable treatment for taxpayers who receive income from foreign sources

The EC has requested France to amend certain provisions on how it calculates personal income tax. Current rules in France state that taxpayers resident in France and earning part of their income in another EEA member State cannot benefit from the same personal and family tax advantages as applied to income earned in France. Under French rules, the taxpayer is also unable to benefit from any refunds or deferrals of tax credits for income from foreign sources when the individual is in deficit. By retaining these provisions, France is in breach of its obligations under the Articles of the Treaty on the Functioning of the European Union (TFEU) and the Agreement on the EEA on the free movement of workers, the right of establishment and the free movement of capital. If the French authorities fail to act within two months, the case may be brought before the European Court of Justice (ECJ).

Reasoned opinions and closures: Bulgaria, Cyprus and Portugal to transpose new transparency rules for the exchange of tax rulings

The EC has decided to send reasoned opinions to Bulgaria, Cyprus and Portugal as who have failed to communicate the transposition of new measures on the automatic exchange of tax rulings between EU tax authorities (Council Directive (EU) 2015/2376). Member States were supposed to transpose these measures by 31 December 2016 and the first exchange of information between all EU tax authorities is supposed to take place by this September. The EC has set the three countries a deadline of two months to reply following which the EC may decide to refer the case to the ECJ.

The EC has welcomed the transposition of the same measures by the Czech Republic, Greece, Hungary and Poland and decided to close their respective infringement cases.

View the EC factsheet July infringements package – Part 1: key decisions.

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