AnswergivenbyMrBolkesteinonbehalfoftheCommission
(12August2003)
AccordingtothebasicprincipleoftheVATsystem,VATappliestoalltransactionsintheproductionor
distributionchainfromwhichtheVATchargeddirectlyonupstreamtransactionshasbeendeducted.TherighttodeductprovidedforinArticle17etseqoftheSixthDirective(
1)formsanintegralpartoftheVAT
systemandcannotberestricted.
NeverthelesstheprincipleoftherighttodeductVATissubjecttoaderogationunderArticle17(6)ofthe
SixthDirectiveallowingMemberStatestoretainalltheexclusionsprovidedforundertheirnationallaws
atthetimetheSixthDirectivecameintoforce.
On the basis of this provision Member States may apply limitations to the right to deduct VAT on
expenditurewhichisnotstrictlyofabusinessnature,andinparticularthatonaccommodation,foodanddrinkandtheuseofpassengercars.
InJune1998(
2)theCommissionpresentedaproposalforaDirectiveapproximatingtherulesgoverning
therighttodeductVATonexpenditureofbothabusinessandprivatenature.Thisconcernsexpenditureonpassengercars,accommodation,foodanddrink,luxurygoods,leisureandentertainmenttowhichMember States apply very divergent rules as regards the deduction of VAT. However, unanimousagreementhasnotyetbeenreachedontheproposalwithintheCouncil.
Article17oftheSixthDirective isageneralprovisionapplyingtoalltaxablepersonssubjecttothe
normalVATarrangements.ThereisnolinkatCommunitylevelbetweendeductionofVATandtaxationofearningsandtherearenoplanstocreatetosuchalink.
(1) SixthCouncilDirective 77/388/EECof17May1977ontheharmonisationofthelawsoftheMemberStates
relating to turnover taxes /dash Common system of valued added tax: uniform basis of assessment, OJ L 145,13.6.1977.
(
2) OJC219,15.7.1998.
(2004/C58E/170) WRITTENQUESTIONE-2338/03
byChristopherHeaton-Harris(PPE-DE)totheCommission
(16July2003)
Subject:Alcoholicconsumptiononflights
Anumberofconstituentshave raised concernsoverhowthe English are portrayedin Europe. Their
concernsarisemainlyfromexperiencesofyoungpeopleusingcheapflightstogoabroadforstagandhenweekends.
AreanystatisticsordatabeingcollectedonviolentincidentsonflightsbetweenEuropeancapitalcities
arisingfromorconnectedwithalcoholconsumption?
Statisticallyoranecdotally,isthereanyapparentassociationbetweenanyincreaseinviolentincidentsand
theincreasingavailabilityofcheapflights?
Whatarethestatisticsforthenumberofpeopledeniedboardingbecauseofalcoholicconsumption?
AnswergivenbyMrsdePalacioonbehalfoftheCommission
(11September2003)
TheCommissionisnotcollecting,atpresent,dataonviolentincidentsduringflightsbetweenEuropean
airportsnorduringflightsdepartingfromEuropeanairportstothirdcountries.TheInternationalCivilAviationOrganisation(ICAO)statesthatnosystematicstudyoftheproblemhasbeencarriedoutsofar,asairlinesaremostlyfocussedonmanagingtheoccasionalincidentratherthanonitsprevention.6.3.2004EN C58E/157 OfficialJournaloftheEuropeanUnion
AstheCommissionisnotgatheringdataonthiskindofincidents,itcannotstateanycorrelationbetween
the increase in violent incidents and the increasing availability offlights at low prices. It is to note,however,thattheInternationalAirTransportAssociation(IATA)hasconfirmedthatincidentsofairragehaveincreasedbyalmost500%inthelasthalfofthe1990s.AccordingtoIATA,thisincreaseisduetomorepeoplebeingabletotravelascomparedtothepastwhereairjourneyswerefortheprivilegedfew.
Thelinktoonlycheapflightsbeingusedbyyoungstersseemsnotrelevant,asairrageistheproductof
several factors, which unfortunately occasionally collide. Reasons may include excessive alcoholconsumptioncombinedwithafeelingofhelplessness,bothwithinthecabinandthroughbeingexposedtolongdelays,aswellasgeneralpsychologicalfeelingsoflostcontrolduetothestressandanxietycertainpeoplefeelwhenflying.Surprisingly,alcoholisnotthemaincauseofairrage,withdrunkennessonlyaccountingfor25%ofallincidents.Insteadanxietythroughdelays,crampedconditionsandrestrictionssuchasbannedsmokingaretheleadingcauses.
The European airline companies have not brought to the attention of the Commission any data on
(general)deniedboardingnordeniedboardingbecauseofover-consumptionofalcohol.TheonlyfiguresavailabletotheCommissionarethoseincludedintheproposalforaRegulationoftheParliamentandoftheCouncilestablishingcommonrulesoncompensationandassistancetoairpassengersintheeventofdeniedboardingandofcancellationorlongdelayofflights(
1).
(1) OJC103E,30.4.2002.
(2004/C58E/171) WRITTENQUESTIONE-2339/03
byIldaFigueiredo(GUE/NGL)totheCommission
(16July2003)
Subject:RelocationoftheAmericanToolcompanyawayfromAlbergaria-a-Velha
ThemultinationalcompanyAmericanToolhasafactoryinAlbergaria-a-Velha,whereitproducessawsof
varioustypesandothercuttingtools.On27June2003itnotifieditsworkforcethatitintendstoclosedownitsoperationsinPortugalwitheffectfromSeptember,towhichendithasalreadylaunchedtheprocesswhichwillresultinthecollectivedismissalofall74ofitsemployees.
Inalettertothoseemployeesthecompanyhascited‘reasonsrelatingtotechnologyandtothecurrent
economic situation’ asgrounds for closing its factory in Albergaria-a-Velha and relocating part ofitsproductiontoDenmark.
AmericanTool’sannouncementhascomeasacompletesurprise,sincethecompanyandthegroupto
whichitbelongswerenotknowntobeinfinancialdifficulty.InadditiontoitsfactoryinDenmark,thegrouphasseveralplantsinotherEUcountries,inparticularSpainandItaly.
WouldtheCommissionsaywhetherornotthecompanyhasreceivedEUsupportand,ifso,howmuch?
Supplementaryanswer
givenbyMrsDiamantopoulouonbehalfoftheCommission
(8October2003)
FollowingcommunicationsbetweentheCommissionandthePortugueseauthorities,thelatterconfirm
thatthecompanyinquestionhasneverreceivedassistancefromtheEuropeanSocialFundorfromotherCommunitysources.C58E/158 EN6.3.2004 OfficialJournaloftheEuropeanUnion