CELEX: C2002/261/16
Language: en
Date: 2002-10-26 00:00:00
Title: Case C-334/02: Action brought on 20 September 2002 by the Commission of the European Communities against the French Republic

C 261/10               EN                      Official Journal of the European Communities                                     26.10.2002
The Commission claims that the Court should:                              The applicant claims that the Court should:
—     declare that, by failing to adopt all the necessary measures        —     Declare that, by excluding absolutely the application of
      prescribed by Council Regulation No 3508/92 (1) estab-                    the rate of levy in discharge to income arising from the
      lishing an integrated administration and control system                   investments and contracts referred to in Articles 125-0 A
      for certain Community aid schemes, the Hellenic Republic                  and 125 A of the Code général des impôts (General Tax
      has failed to fulfil its obligations under that regulation;               Code), where the debtor is not resident or established in
                                                                                France, the French Republic has failed to fulfil its obli-
                                                                                gations under Articles 49 and 56 EC;
—     order the Hellenic Republic to pay the costs.
                                                                          —     Order the French Republic to pay the costs.
Pleas in law and main arguments
                                                                          Pleas in law and main arguments
Under the regulation at issue, the Member States were obliged             The income referred to in Article 125 A of the Code general
to establish by 1 January 1997 an integrated system including             des impôts (CGI) (income from interest arising from arrears
a computerised data base, an alphanumeric identification                  and from all kinds of State bonds, stocks, participation share
system for agricultural parcels, an alphanumeric system for               certificates, stocks and other certificates of indebtedness,
the identification and registration of animals, standardised              deposits, guarantees and current accounts) and that referred to
processing of aid applications and an integrated control system           in Article 125-0 A of the CGI (income from certificates or
(Article 2).                                                              bond investments and other similar investments), is subject to
                                                                          income tax. None the less, the levy in discharge (which is often
                                                                          attractive because its rate is generally lower than the marginal
                                                                          rate of tax resulting from the application of the progressive
The Greek authorities have not yet established an integrated
                                                                          scale of tax on income and of splitting income) can be applied
system of that kind, and the alternative system which they
                                                                          to it only if the debtor is resident or established in France.
apply for checking areas and requests for payment has
repeatedly been considered inadequate and has been the cause
of corrections in the clearing of accounts.
                                                                          The Commission takes the view that the above constitutes a
                                                                          restriction on the freedom to provide services and on the free
                                                                          movement of capitals contrary to Articles 49 and 56 of the EC
( 1) OJ L 355, 5.12.1992, p. 1.                                           Treaty, in that the more generally favourable levy in discharge
                                                                          is not applied to income collected by French residents from a
                                                                          debtor which is not resident or established in France, even if
                                                                          the person in question is able to provide evidence that it fulfils
                                                                          all the conditions in which the levy in discharge is applied to
                                                                          income obtained from a debtor resident or established in
                                                                          France.
Action brought on 20 September 2002 by the Com-
mission of the European Communities against the French
                               Republic
                                                                          Action brought on 20 September 2002 by the Com-
                          (Case C-334/02)                                 mission of the European Communities against the Grand
                                                                                               Duchy of Luxembourg
                          (2002/C 261/16)
                                                                                                   (Case C-335/02)
                                                                                                   (2002/C 261/17)
An action against the French Republic was brought before the
Court of Justice of the European Communities on 20 Septem-
ber 2002 by the Commission of the European Communities,
represented by R. Lyal and Ch. Giolito, acting as Agents, with            An action against the Grand Duchy of Luxembourg was
an address for service in Luxembourg.                                     brought before the Court of Justice of the European Communi-