(June 8, 2015)

On June 8, 2015 the European Commission issued a press release in which it announces that it has issued two injunctions ordering Estonia and Poland to deliver within one month information requested by the Commission on their tax rulings practice. According to the European Commission both countries have to-date refused to respond in full to previous information requests. The press release furthermore states that should any of the two fail to deliver the missing information within one month, the European Commission may refer that Member State to the European Court of Justice.

The previous information requests to Estonia and Poland were sent in December 2014 as part of the Commission extending its state aid enquiry into national tax ruling practices to cover all EU Member States. The enquiry is aimed at clarifying allegations that tax rulings may constitute state aid and to allow the European Commission to take an informed view of the practices of all Member States.

According to the press release, to-date, Estonia and Poland have failed to adequately respond to the request for information, arguing fiscal secrecy and the principle of proportionality. The press release furthermore states that Poland and Estonia have only submitted general information but refused to provide a specific and detailed overview of tax rulings issued from 2010 to 2013. It furthermore states that the European Commission is of the opinion that it is legally entitled to request any information it deems necessary for a state aid investigation, and Member States are under a legal obligation to respond.

The press release furthermore states that with the exception of Estonia and Poland, all EU countries have cooperated and provided the required information in full. On the basis of the information received, on June 8, 2015 the Commission will ask 15 Member States to provide a substantial number of individual tax rulings. The European Commission emphasizes that requesting these tax rulings does not prejudge whether this will lead to individual state aid investigations concerning the recipients of these tax rulings.

According to the press release, on June 8, 2015, letters requesting individual tax rulings are being sent to:

·        Austria;

·        Belgium;

·        the Czech Republic;

·        Denmark;

·        Finland;

·        France;

·        Germany;

·        Hungary;

·        Italy;

·        Lithuania;

·        Portugal;

·        Romania;

·        Slovakia;

·        Spain; and

·        Sweden.

Previously, the Commission had already requested individual tax rulings from Cyprus, Ireland, Luxembourg, Malta, the Netherlands and the UK.

The press release furthermore states that based on the information received, at this stage the Commission did not have indications that merit asking Bulgaria, Croatia, Greece, Latvia and Slovenia for tax rulings.

For further information click here to be forwarded to the press release as issued by the European Commission in this respect.

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