2005/642/EC: Commission Decision of 1 December 2004 on the State aid implemented by Greece in favour of reduction of corporate tax rate for investments over EUR 30 million (notified under document number C(2004) 4566)   (Text with EEA relevance)
Date: 2004-12-01
Institutions: European Commission
Subjects: Greece, State aid, aid to undertakings, control of State aid, investment, tax relief

10.9.2005

EN

Official Journal of the European Union

L 234/11

II

(Acts whose publication is not obligatory)

COMMISSION

COMMISSION DECISION

of 1 December 2004

on the State aid implemented by Greece in favour of reduction of corporate tax rate for
investments over EUR 30 million

(notified under document number C(2004) 4566)

(Only the Greek text is authentic)

(Text with EEA relevance)

(2005/642/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

April 2004 (SG(2004)A/3964) and Greece last provided
information on 17 August 2004 (A/36270).

Having regard to the Treaty
establishing the European
Community, and in particular the first subparagraph of Article
88(2) thereof,

Having regard to the Agreement on the European Economic
Area, and in particular Article 62(1)(a) thereof,

Having called on interested parties to submit their comments
pursuant to the provisions cited above (1),

Whereas:

I. PROCEDURE

(1)

(2)

On 3 March 2004 (C(2004) 456 fin), the Commission
initiated the formal investigation procedure in respect of
for
the measure Reduction of
investments over EUR 30 million.

corporate

tax rate

The Commission decision to initiate the procedure was
published in the Official Journal of the European Union (2).
The Commission invited interested parties to submit their
comments on the measure.

(3)

The reply from the Greek authorities to the initiation of
investigation procedure was received on 13
the formal

(1) OJ C 87, 7.4.2004, p. 10.
(2) See footnote 1.

(4)

The Commission received no comments from interested
third parties.

II. DESCRIPTION

The measure

On 15 January 2004, Greece enacted the law on ‘Devel-
opment and social policy measures — Objectivity of tax
controls and other provisions’, which entered into force
on 30 January 2004, on the date of its publication in the
Official Journal of the Hellenic Republic No 3220/2004
(FEK A 15). Article 1 of the law provides that under-
takings investing over EUR 30 million in Greece benefit
from a reduction of the applicable corporate tax rate
from 35 % (the normal corporate tax rate)
to 25 %
during a period of 10 years.

III. ASSESSMENT

The law which was the object of the formal investigation
procedure was abrogated by Greece with the retroactive
effect by law 3259/2004, Article 22, paragraph 1
(published on 4 August 2004).

Greece confirmed that no undertaking took advantage of
the
law
3220/2004.

incentive provided for

in Article 1 of

(5)

(6)

(7)

L 234/12

EN

Official Journal of the European Union

10.9.2005

(8)

As the measure was never applied in practise and is now
abrogated, the assessment of the measure and the formal
investigation procedure under Article 88(2) of the EC
Treaty in respect of this measure are now without object,

Article 2

This Decision is addressed to the Hellenic Republic.

HAS ADOPTED THIS DECISION:

Article 1

Done at Brussels, 1 December 2004.

The formal investigation procedure under Article 88(2) of the
EC Treaty initiated on 3 March 2004 in respect of reduction of
corporate tax rate for investments over EUR 30 million is
closed.

For the Commission

Neelie KROES
Member of the Commission