WRITTEN QUESTION E-0364/01 by Glyn Ford (PSE) to the Commission. Xerox restructuring ‐ corporate tax.
Date: 2001-02-14
Institutions: European Parliament, Provisional data
Subjects: Ireland, application of EU law, corporation tax, industrial restructuring, tax relief, tax system

21.8.2001

EN

Official Journal of the European Communities

C 235 E/187

This applies to the communication to the Commission by the Member States of national implementing
measures intended to transpose Community directives.

To this end, the Commission checks the communication of national implementing measures transmitted
by the Member States as transposing legislation for Community Directives, and initiates the appropriate
infringement procedures pursuant to Article 226 (ex Article 169) of the EC Treaty against those Member
States, which fail to communicate national implementing measures for Community directives once the
deadline for transposition has expired.

Directive 1999/94/EC of the Parliament and the Council of 13 December 1999 relating to the availability
of consumer information on fuel economy and CO2 emissions in respect of the marketing of new
passenger cars should have been transposed by the Member States into their national law by 18 January
2001.

At present (12 February 2001), three Member States (the Netherlands, Finland and Denmark) have
communicated national transposition measures to the Commission in respect of this Directive.

The Commission will launch the regular monitoring exercise with regard to the lack of transposition of
this Directive and letters of formal notice will be issued to any Member State which has not communicated
its transposition at that time. In the absence of a positive response to the letter of formal notice, the
Commission will address a reasoned opinion to any Member State which has not communicated the
relevant national legislation at that stage.

(2001/C 235 E/219)

WRITTEN QUESTION E-0364/01

by Glyn Ford (PSE) to the Commission

(14 February 2001)

Subject: Xerox restructuring (cid:129) corporate tax

Xerox is currently in the process of restructuring its European Manufacturing Operations at Venrey, in
Holland, Mitcheldean in the UK and Dundalk in Ireland.

However, this restructuring is in danger of being distorted by the very low level of corporation tax levied
in Ireland which appears to act against the free movement of capital, goods, services and persons. Does the
Commission plan to intervene?

Answer given by Mr Bolkestein on behalf of the Commission

(30 March 2001)

It would be inappropriate to comment on the situation of an individual company and therefore this
response can only cover the situation in general. Generally speaking the effective rate of corporation tax is
the result of the rate of tax applicable, be it the general standard rate or in the case of certain qualifying
manufacturing activities in Ireland, a reduced rate, and the taxable base.

In July 1998 the Irish government announced that the general rate of corporation tax will progressively
decrease from 28 % (1999) to 24 % (2000), 20 % (2001), 16 % (2002), and to 12,5 % (2003). In the
absence of secondary legislation, the setting of the general statutory corporation tax rate is a matter for
individual Member States. Although this is subject to the obligation to comply with Community law, and
more particularly the EC Treaty provisions concerning the fundamental freedoms mentioned in the
question, the Commission does not consider that the (cid:145)low(cid:146) general statutory corporation tax rate in Ireland
infringes these.

However, the Commission did intervene against a sectorially different application of the Irish corporation
tax, which was considered to infringe EC Treaty provisions. In 1998 the Commission, under the State aid
control provisions, asked the Irish government to put an end to an unjustified sectorial differentiation of
the corporate tax rate in favour of
the manufacturing sector. The Irish government accepted the
Commission(cid:146)s proposal as an appropriate measure and this tax measure is currently being phased out.

C 235 E/188

Official Journal of the European Communities

EN

21.8.2001

Moreover in December 1997 Council adopted a Resolution on a Code of Conduct for business taxation (1),
which led to the establishment of the Code of Conduct (Business Taxation) Group. In the report to the
Ecofin Council in November 1999 the 10 % manufacturing rate was identified as a tax measure with
harmful features and the rollback of this measure has to take place in accordance with the Council
Conclusions of the November 2000 Ecofin meeting.

(1) OJ C 2, 6.1.1998.

(2001/C 235 E/220)

WRITTEN QUESTION E-0367/01

by David Bowe (PSE) to the Commission

(14 February 2001)

Subject: EU funds linked to anti-Semitic literature

Is the Commission aware of any EU funds used in Palestine to produce literature of an anti-Semitic nature?
If so, what is the Commission doing to investigate this?

Answer given by Mr Patten on behalf of the Commission

(2 April 2001)

The Commission rejects any attempt to promote intolerance and ethnic hatred or to hinder the efforts by
the different parties committed to peace in the Middle East. In this context, anti-Semitic content in books,
whatever its nature, is particularly regrettable.

None of the projects in support of the Palestinian Authority financed by the Commission have supported
the production or distribution of books, including schoolbooks. As regards projects financed bilaterally by
Member States, the Commission has no right to monitor or interfere, and therefore the relevant Member
States would have to be addressed individually.

The Commission has always focused its assistance in promotion of a culture of peace, tolerance and
human rights in the Middle East. In this regard, Article 2 of the Union-Palestinian Interim Association
Agreement clearly states that mutual co-operation between the Parties (cid:145)has to be based on the respect of
democratic principles and fundamental human rights as set out in the universal declaration on human
rights, which guides their internal and international policy (cid:133)(cid:146). On the basis of these principles, the
Commission chooses whether or not to fund a proposed project. So far, no request has ever been made for
the printing or distribution of books, including schoolbooks.

(2001/C 235 E/221)

WRITTEN QUESTION E-0368/01

by Glenys Kinnock (PSE) to the Commission

(14 February 2001)

Subject: Gender balance in the EuropeAid Cooperation Office

Did the Commission follow any particular procedures, intended to ensure a gender balance, when the
Directors in the new EuropeAid Cooperation Office were appointed?

Answer given by Mr Patten on behalf of the Commission

(20 April 2001)

The EuropeAid Cooperation Office was set up on 1 January 2001. This followed the decision taken by the
Commission on 16 May 2000 (1) to reform the management of the Community(cid:146)s external assistance
programmes. The reorganisation took place within the RELEX family, involving the former SCR (Joint