WRITTEN QUESTION E-0353/02 by Paul Rübig (PPE-DE) to the Commission. Tax changes in connection with cross-border work and services in Germany.
Date: 2002-02-14
Institutions: European Parliament, Provisional data
Subjects: Germany, administrative formalities, building industry, corporation tax, restriction on competition, tax exemption, tax harmonisation, tax law, tax system

29.8.2002

EN

Official Journal of the European Communities

C 205 E/123

Answer given by Ms de Palacio on behalf of the Commission

(27 March 2002)

The Commission has approved, under Article 56 of the ECSC Treaty, the granting of aid for the retraining
of miners amounting to € 18 517 million in 1998, € 11 828 million in 1999, € 7 220 million in 2000 and
€ 19 165 million in 2001. This aid was granted for miners affected by the restructuring of the Spanish coal
industry.

The company Unión Minera del Norte S.A. (Uminsa) received EUR 1 851 461 in 1998, EUR 469 000 in
1999, EUR 906 708 in 2000 and EUR 832 500 in 2001 from the Spanish authorities as repayment for the
ECSC aid mentioned above which the company had advanced to the miners concerned.

Spain has also granted state aid to Uminsa to cover its operating losses. This aid has to be approved by the
Commission, which it did for 1998, 1999, 2000 and 2001, the years during which the ‘1998-2002 Coal
Plan’ was in force and approved by the Commission in Decisions No 98/637/ECSC (1) of 3 June 1998,
1999/451/ECSC (2) of 4 May 1999, 2001/162/EC (3) of 13 December 2000, and its Decision of
11 December, which has not yet been published but a copy of which is being sent to the Honourable
Member and to Secretariat-General of the Parliament.

The aid authorised by the Commission for Uminsa is as follows:

9 operating aid of ESP 5 370 million for 1999, ESP 6 453 million for 2000 and ESP 6 786 million for

2001, under Article 3 of Decision No 3632/93/ECSC; (4)

9 aid for the reduction of activity of ESP 600 million for 2000, under Article 4 of Decision No 3632/

93/ECSC;

9 aid to cover exceptional restructuring costs of ESP 2 762 million for 2000, under Article 5 of Decision
No 3632/93/ECSC. Spain also gives financial support to workers affected by restructuring measures,
but it still has to provide detailed information on what proportion of this support was used for
compensation payments to Uminsa workers.

The above information should be examined bearing in mind that Uminsa was created by a series of
mergers of some 17 companies during 1998 and 1999, and that consequently the size of the company has
changed over the whole of the period under consideration.

(1) OJ L 303, 13.11.1998.
(2) OJ L 177, 13.7.1999.
(3) OJ L 58, 28.2.2001.
(4) OJ L 329, 30.12.1993.

(2002/C 205 E/133)

WRITTEN QUESTION E-0353/02

by Paul Rübig (PPE-DE) to the Commission

(14 February 2002)

Subject: Tax changes in connection with cross-border work and services in Germany

From 1 January 2002 a 15 % tax is being charged on payments for building work carried out in Germany
for a legal entity under public law or a private person regarded as the employer under the turnover tax
law. This tax can only be waived if the builder gives the client a certificate of exemption from the relevant
German tax office.

C 205 E/124

Official Journal of the European Communities

EN

29.8.2002

The normal practice of the German tax authorities is to oblige Austrian enterprises that are not based in
Germany to go through a cumbersome administrative procedure to apply for a separate exemption for
each building project. The extensive additional notification requirements make it considerably more
difficult, particularly for SMEs, to carry out their activities in Germany particularly as, under the dual
taxation agreement and the official assistance agreement between Austria and Germany, the data required
by the German tax authorities could be provided by submitting records that have to be kept in Austria. It
is particularly discriminatory that, under normal administrative practice, enterprises subject to profit tax in
Germany (i.e. all German building firms) can usually obtain an exemption certificate valid for up to three
years and thus have to deal with far less bureaucracy, which gives the German enterprises a competitive
advantage.

Does this practice of the German tax authorities infringe EU law, in the light of the comments by the
Court of Justice in its judgment in the De Coster case?

Reply given by Mr Bolkestein on behalf of the Commission

(4 April 2002)

The Commission would draw the Honourable Member’s attention to its reply to written question
E-2875/01 by Ms Plooij-van Gorsel (1) and add the following observations:

9 Direct

taxes are the responsibility of

the Member States, which are required to exercise that
responsibility in accordance with the principle of freedom to provide services guaranteed by Article 49
of the EC Treaty.

9 The purpose here is to combat tax evasion of the type that has occurred in the building industry. The
Commission would inform the Honourable Member that it has received a complaint regarding the
legislation in question and is currently examining the dossier. Before the Commission can reply
definitively to the question whether proceedings for Treaty infringement should be brought under
Article 226 of the EC Treaty further investigations are required, including checks on implementing
legislation announced for the Spring.

(1) OJ C 172 E, 18.7.2002, p. 17.

(2002/C 205 E/134)

WRITTEN QUESTION E-0359/02

by Stavros Xarchakos (PPE-DE) to the Commission

(14 February 2002)

Subject: Water shortage in Greece

Greece was recently hit by massive snowfalls, while for more than two and a half months (from early
November 2001 until mid-January 2002), the amount of rain that fell throughout the country was
unprecedented. However, there are strong misgivings that this water was not collected anywhere owing to
a lack of suitable facilities.

Does the Commission know the exact number of major co-funded projects that were carried out in Greece
over the last ten years in order to restrict water shortages? Is the Commission satisfied with Greece’s efforts
to collect water? What is its appraisal of the situation with regard to water shortages in Greece over the
next ten years?