EN Official Journal of the European Union CE 70/141

(2004/C 70 E/145)

WRITTEN QUESTION P-2800/03

by Paulo Casaca (PSE) to the Commission

(17 September 2003)

Subject: Implementation of Regulation (EC) No 1227/2001 of 18 June 2001

The Portuguese tax authorities have recently informed recipients of compensation for temporary cessation of the activities of vessels and crew members operating under the Fisheries Agreement between the European Community and Morocco (Regulation (EC) No 1227/2001 (1)) that they are liable to personal income tax.

1. Does the Commission believe that the compensation granted should be viewed as ‘unemployment benefit’, which under Portuguese tax law is exempt from income tax, or does it consider instead that the compensation falls into a different category and is such that it should be taxed as described above?

2. Does the Commission think that the principle of equality before the law, as laid down in the European Charter of Fundamental Rights, allows different amounts to be allocated to citizens who, although they are nationals of different countries, Portugal and Spain, are also European citizens?

3. Does the Commission not believe that the Community legislation on the FIFG, whereby Community measures must be financed in part by national funding, might be rendered meaningless in practice if the amount of the national contribution were to be offset fully or to some extent by a tax charge?

4. Does the Commission not think that, as a matter of urgency, it should approach the Portuguese authorities to clarify its position so as to enable recipients of compensation to understand what actual support they are entitled to receive?

Answer given by Mr Fischler on behalf of the Commission

(24 October 2003)

Following non-renewal of the Fisheries Agreement with Morocco the Council adopted Regulation (EC) No 2561/2001 (2) in order to encourage conversion action for fishermen and vessels that until 1999 had relied on it. Regulation (EC) No 1227/2001 (3) had already, in order to adjust the legal framework to ‘Morocco’ aid needs, waived certain provisions of Regulation (EC) No 2792/1999 (4).

The legal basis of the compensation granted to fishermen for temporary cessation of their activity is Article 16 of Regulation (EC) No 2792/1999 of 17 December 1999, last amended by Council Regulation (EC) No 2369/2002 of 20 December 2002 (5).

Under the terms of that Article it falls to the national managing authorities to determine, using the relevant parameters, the actual compensation to be paid in each individual case. It is in that context that the compensation granted to Spanish and to Portuguese fishermen has been set at different levels.

As provided for by Community rules (6), this compensation is paid with no reduction made. But the taxation of income is a matter for the Member States and it is up to them to take account of their own rules when determining compensation levels.

(1) OJ L 168, 23.6.2001, p. 1.

(2) Council Regulation (EC) No 2561/2001 of 17 December 2001 aiming to promote the conversion of fishing vessels and of fishermen that were, up to 1999, dependent on the Fishing Agreement with Morocco, OJ L 344, 28.12.2001.

(3) Council Regulation (EC) No 1227/2001 of 18 June 2001 derogating from certain provisions of Regulation (EC) No 2792/1999 laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector, OJ L 168, 23.6.2001.

(4) Council Regulation (EC) No 2792/1999 of 17 December 1999, laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector, OJ L 337, 30.12.1999.

(5) OJ L 358, 31.12.2002.

(6) Article 32 of Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds, OJ L 161, 26.6.1999.