WRITTEN QUESTION E-1846/01 by Esko Seppänen (GUE/NGL) to the Commission. Finnish system of tax credits on dividends.
Date: 2001-06-26
Institutions: European Parliament, Provisional data
Subjects: Finland, corporation tax, economic discrimination, tax rebate

6.6.2002

EN

Official Journal of the European Communities

C 134 E/5

(2002/C 134 E/005)

WRITTEN QUESTION E-1846/01

by Esko Seppänen (GUE/NGL) to the Commission

Subject: Finnish system of tax credits on dividends

(26 June 2001)

It is clear that the system of tax credits on dividends applicable in Finland disproportionately favours
Finnish shareholders over foreign shareholders. Has the Commission considered this unusual system, and
does it intend to take any action to ensure the equal taxation of national and foreign shareholders?

Answer given by Mr Bolkestein on behalf of the Commission

(3 September 2001)

The question posed by the Honourable Member on the Finnish system of tax credits on dividends raises
the difficult issue of the compatibility of imputation systems with Community law.

In the light of recent case-law of the Court of Justice, there could be serious doubts about the compatibility
of some such systems with Community law insofar as they may entail restrictions on the right of
establishment and the free movement of capital. This would be the case where a domestic shareholder
obtains full or partial relief, for instance by means of a tax credit for the tax paid at corporate level,
whereas no corresponding relief is given to a foreign shareholder. The Commission is planning to discuss
this general issue with all Member States at a meeting in the autumn of 2001. Based on the outcome of
these discussions, the Commission will consider any further action to be taken, including, if necessary, the
opening of proceedings under Article 226 (ex Article 169) of the EC Treaty.

In this context it should also be noted that the issue of dividend taxation in general is one of the topics to
be covered in a study on company taxation which is currently being conducted by the Commission at the
request of the Council, and which is scheduled to be published in autumn 2001

(2002/C 134 E/006)

WRITTEN QUESTION E-1894/01

by Konstantinos Hatzidakis (PPE-DE) to the Commission

(28 June 2001)

Subject: Monitoring of projects jointly funded under the 2nd CSF in Greece

Is the Commission satisfied with the system of monitoring the proper management and transparency of
programmes jointly funded under the 2nd CSF in Greece? What is the extent of the infringements detected
and what penalties have been imposed?

In particular, does the Commission consider that the system works in a totally satisfactory way in respect
of penalties imposed for defective work in carrying out public contracts? Does OLAF (the Anti-Fraud
Office) have all information about defective work? What additional measures should the Greek authorities
take?

Answer given by Mr Barnier on behalf of the Commission

(17 September 2001)

For the 1994-1999 programming period, the Commission would remind the Honourable Member that,
under Article 23 of Council Regulation (EEC) No 2082/93 of 20 July 1993 (1), the Member States are
chiefly responsible for checking that part-financed operations are properly carried out, providing
supporting documents on the relevant expenditure, preventing and taking action against irregularities,
and recovering any amounts wrongly paid.