WRITTEN QUESTION No. 1069/98 by Allan MACARTNEY to the Commission. Community tax rates for inward investment
Date: 1998-04-06
Institutions: European Parliament, MACARTNEY
Subjects: Community tax, European undertaking, State aid, code of conduct, interest, investment abroad, quasi-fiscal charge, restriction on competition, tax harmonisation, tax relief

22.2.1999

EN

Official Journal of the European Communities

C 50/7

(1999/C 50/009)

WRITTEN QUESTION E-1032/98

by Mark Watts (PSE) to the Commission

(6 April 1998)

Subject: Ramsgate Ferry Tragedy: failure of Swedish companies to pay fine

In September 1994, a walkway between a dock at Ramsgate ferry terminal and a ship waiting to depart suddenly
collapsed; 6 passengers were killed and 7 others injured. The Swedish companies who manufactured the
walkway, FEAB and FKAB, were subsequently found guilty in British courts, who imposed a fine of £1 million
for negligence.

These Swedish firms have failed to pay this fine. The companies have recently stated on British television that
they have no intention of paying it. They claim that, because the incident occurred before Sweden joined the EU,
they are not bound by Community law.

Will the Commission join me in condemning these Swedish firms, FEAB and FKAB, for showing no respect for
British law or for the victims of the diaster or their families? Will the Commissioner further join me in calling on
the companies to pay the fine in full and apologize for their behaviour to date?

Supplementary answer
given by Mr Kinnock on behalf of the Commission

(10 June 1998)

Further to its answer of 17 April 1998 (1), the Commission is now able to provide the following additional
information.

Analysis of the information provided by the Member State concerned relating to the facts referred to by the
Honourable Member makes clear that the Commission has no jurisdiction to deal with the questions asked which
relate to a matter that is solely for the national authorities. The Commission is therefore unable to take any action
in the case to which reference is made. However it appears unlikely that the fact that the accident occurred prior to
Sweden joining the Community will have any effect on the possible liability of the Swedish companies under the
applicable national law.

(1) OJ C 386, 11.12.1998, p. 73.

(1999/C 50/010)

WRITTEN QUESTION E-1069/98

by Allan Macartney (ARE) to the Commission

(6 April 1998)

Subject: Community tax rates for inward investment

Can the Commission confirm whether any Member States give specially reduced tax rates to inward investors and
in such a case, which Member States? Is such a practice anti-competitive and against the EC competition rules?

Answer given by Mr Monti on behalf of the Commission

(3 July 1998)

All Member States offer different tax treatment between resident and non-resident investors, reflecting, amongst
other things, the general principle, as set out in the Organisation for economic co-operation and development
(OECD) model tax convention, that tax should ultimately be levied in the country of residence of the investor
rather that in the country of the source of the income.

The generally favourable treatment given to interest paid to non-resident individuals and unrestrained competi-
tion between Member States in this field can encourage tax evasion, undermine tax revenues within the
Community and contribute to a greater effective tax burden on labour than on capital income.