WRITTEN QUESTION No. 251/98 by Marco CELLAI to the Commission. Taxation of companies' net assets (SUPPLEMENTARY ANSWER)
Date: 1998-02-13
Institutions: CELLAI, European Parliament
Subjects: Italy, application of EU law, company with share capital, corporation tax, tax, tax on income













EUR-Lex - 91998E0251(01) - EN






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91998E0251(01)

WRITTEN QUESTION No. 251/98 by Marco CELLAI to the Commission. Taxation of companies' net assets (SUPPLEMENTARY ANSWER)  


Official Journal C 135 , 14/05/1999 P. 0001 





WRITTEN QUESTION E-0251/98by Marco Cellai (NI) to the Commission(13 February 1998)Subject: Taxation of companies' net assetsIn compliance with the principle that capital contributions or the raising of capital may not be taxed more than once in the European Community so as not to create barriers to the free movement of capital, Article 1 of Directive 69/335/EEC(1) of 17 July 1969 requires harmonization of taxation of contributions of capital to capital companies. The directive stipulates that Member States may not apply taxes on the raising of capital by such companies apart from capital duty, the rate of which, following the amendment introduced by Article 1 of Directive 73/80/EEC(2) of 18 April 1973, may not exceed 1 % (Article 10 of Directive 69/335/EEC).Under Italian regulations, capital duty (the only tax allowed by the Community legislation referred to above) is represented by the registration tax on capital contributions other than contributions of property rights: this tax is charged at the rate of 1 %. The tax on the net assets of companies thus comes on top of this registration tax and has been applied at the rate of an additional 0,75 % to the equity capital at the financial year end, year after year despite the fact that it is neither exceptional or temporary in nature.The tax thus has an equivalent effect equivalent to that of the ordinary capital duty and as such is in breach of the provisions of Article 10 of Directive 69/335/EEC of 17 July 1969.The approach consistently adopted under national and Community case law on non-compliance of this kind would require the regulations on the tax on the net assets of companies to be repealed immediately and with retroactive effect, without any need for intervention by the legislator. On these grounds, many Italian companies have applied to the Ministry of Finance for the refund of amounts wrongly paid in respect of the tax on net assets of companies together with accrued interest.Does the Commission not consider that it should remind the Italian Government of its duty to amend the relevant legislation and introduce new provisions without delay?Supplementary answergiven by Mr Monti on behalf of the Commission(16 December 1998)The question of the compatibility of the Italian tax on business assets with amended Directive 69/335/EEC of 17 July 1969 concerning indirect taxes on the raising of capital was the subject of a question for a preliminary ruling submitted to the Court of Justice by an Italian court.In its decision of 27 October 1998 (Case C-4/97 Manifattura italiana Nonwoven SpA), the Court of Justice ruled that the tax on net business assets was neither a capital duty nor a tax possessing the characteristics of such a duty and that, consequently, the Directive did not prohibit the collection of the tax from corporate enterprises.Finally, the Commission would draw the Honourable Member's attention to the fact that this tax has now been abolished.(1) OJ L 249, 3.10.1969, p. 25.(2) OJ L 103, 18.4.1973, p. 13.