Proposal for a COUNCIL DECISION on the date of application of Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. In accordance with Article 17 (2) of Directive 2003/48/EC [1], Member States were to apply the provisions of this Directive from 1 January 2005 provided that the conditions set out in that paragraph had been fulfilled. In accordance with Article 17 (3), the Council had to decide, by unanimity, at least six months before 1 January 2005, whether this condition would be met, having regard to the dates of entry into force of the relevant measures in the third countries and dependent or associated territories concerned.

[1] OJ L 157, 26.6.2003, p.38.

2. In June 2004 the Council decided that the condition for the application of the provisions of the Directive from 1 January 2005 set out in Article 17 (2) will not be met. Article 17 (3) provides that, if the Council does not decide that the conditions will be met, it shall, acting unanimously on a proposal by the Commission, adopt a new date for the purposes of paragraph 2.

3. Based on the outcome of its negotiations with the third countries referred to in Article 17 (2), and on the assurances given by all relevant dependent or associated territories, the Commission is of the view that all these countries and territories will be in a position to apply measures equivalent to, or the same as, those provided for by the Directive from 1 July 2005. It is therefore proposed to adopt this date as the new date for the purposes of Article 17 (2). This new date of application will also be subject to the conditions set out in Article 17 (2) (i) and (ii).

Proposal for a COUNCIL DECISION on the date of application of Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to Directive 2003/48/EC [2], and in particular Article 17 (3) thereof,

[2] OJ L 157, 26.6.2003, p.38.

Having regard to the proposal from the Commission [3],

[3] OJ C [...] [...], p. [...]

Whereas:

(1) Article 17 (2) of Directive 2003/48/EC sets out the conditions for application of the provisions of the Directive from 1 January 2005.

(2) The Council did not decide before 1 July 2004 that the conditions set out in Article 17 (2) of Directive 2003/48/EC will be met, having regard to the dates of entry into force of the relevant measures in the third countries and dependent or associated territories concerned.

(3) Article 17 (3) of Directive 2003/48/EC provides that, if the Council does not decide that the condition set out in paragraph 2 of that article will be met, it shall, acting unanimously on a proposal by the Commission, adopt a new date for the purposes of paragraph 2.

(4) It appears that each of the third countries and dependent or associated territories referred to in Article 17 (2) of Directive 2003/48/EC will be able to meet the conditions set out in that paragraph by 1 July 2005.

(5) The date of 1 July 2005 should therefore be adopted as the new date for the purposes of Article 17 (2) of Directive 2003/48/EC, which date shall also be subject to the conditions set out in that paragraph.

HAS ADOPTED THIS DECISION:

Article 1

The date referred to in Article 17 (2) of Directive 2003/48/EC shall be replaced by 1 July 2005.

Article 2

This Decision is addressed to the Member States and shall be published in the Official Journal of the European Union.

Done at Brussels,

For the Council

The President