Spain in the dock over illegal Basque tax breaks

22nd December 2005, Comments 0 comments

22 December 2005, BRUSSELS — The European Commission has referred Spain to the European Court of Justice for failing to comply with a ruling on illegal tax breaks granted to companies set up in the Basque Country.

22 December 2005

BRUSSELS —  The European Commission has referred Spain to the European Court of Justice for failing to comply with a ruling on illegal tax breaks granted to companies set up in the Basque Country.

Brussels said the Spanish government had failed to take any action since a ruling in 2001 to recover unlawful aid which breached European Union competition rules.

Neelie Kroes, European competition commissioner, said: "I intend to take a strict approach with member states that fail to comply with state aid recovery decisions.

"This is essential for ensuring the credibility of our state aid policy."

The rulings dealt with a scheme in the Basque Country providing 10-year corporate tax exemptions for newly created firms in the region.

Since 2002, Spain has not replied to repeated requests for information on the implementations of the EC decisions.

[Copyright EFE with Expatica]

Subject: Spanish news 


0 Comments To This Article