WRITTEN QUESTION E-2875/01 by Elly Plooij-van Gorsel (ELDR) to the Commission. New tax legislation in the Federal Republic of Germany.
Date: 2001-10-22
Institutions: European Parliament, Provisional data
Subjects: EU law - national law, Germany, Netherlands, corporation tax, restriction on competition, single market, tax law

18.7.2002

EN

Official Journal of the European Communities

C 172 E/17

The Commission is not at present providing any humanitarian assistance or food aid to Zimbabwe.

Its development co-operation assistance consists on projects on HIV/AIDS prevention and control, basic
health and primary education for poorest kids. In its view, these types of projects should not be halted.

The possible application of ‘smart sanctions’ is not decided solely by a Member of the Commission, but by
the Community as a whole. These measures fall outside the framework of the Cotonou Agreement. The
Commission is now into Article 96 consultations within that Agreement, which does not envisage this type
of sanctions.

(1) COM(2001) 623.

(2002/C 172 E/018)

WRITTEN QUESTION E-2875/01

by Elly Plooij-van Gorsel (ELDR) to the Commission

Subject: New tax legislation in the Federal Republic of Germany

(22 October 2001)

On 7 September 2001 the law to curb illegal activities in the construction sector entered into force in the
Federal Republic of Germany. This law requires clients in the building sector to withhold 15 % of the gross
contract sum from payments to the contractor and transfer it to the German tax authorities. The amount is
intended as an advance payment in respect of any corporation tax, income tax and/or turnover tax payable
in Germany.

However, the tax office in Kleve, which is responsible for implementing the legislation in the case of Dutch
firms, has still not take any steps to ensure that the legislation can be implemented effectively. Not only are
there are no implementing directives, but the Kleve office does not have the manpower or facilities to
implement the regulations. It is unlikely that these problems can be resolved in the near future. Many
Dutch exporting firms therefore face financial and administrative chaos.

1.

Is the Commission aware of the situation?

Does the Commission share my view that the complex and unclear administrative obligations make

2.
it very difficult for Dutch firms to operate in Germany and are therefore distorting competition?

Does the Commission agree with me that unless clear implementing measures are forthcoming,

3.
enforcement of the legislation should be put on hold until the implementing directives are known?

Answer by Mr Bolkestein on behalf of the Commission

(21 December 2001)

1.
The Commission is aware of the Law of 30 August 2001 (German Federal Government Gazette,
Bundesgesetzblatt, Part I, p. 2267). At the Commission’s request the new Law no longer treats domestic
and foreign companies differently, in contrast to the earlier Law with similar objectives. The tax deduction
is to be applied only to payments made after 31 December 2001 as set out in new Law’s rewording of
Section 48 of the Income Tax Law (Einkommensteuergesetz).

2. and 3.
The Commission has received letters from foreign companies and is examining the facts they
contain to see whether the actual application of this new Law leads to indirect discrimination against
foreign companies. If necessary the Commission will take the necessary steps to eliminate measures that
are incompatible with the EC Treaty.