Press Release: Direct taxation: Commission requests Spain to end infringement to the Parent-Subsidiary Directive

The European Commission has decided to send Spain a formal request to amend a rule which automatically assumes the existence of an abuse in cases where a Spanish company pays a dividend to a company established in another Member State which is owned by a company resident in a third country. The Commission considers these rules to be contrary to the Parent-Subsidiary Directive. The request is in the form of a reasoned opinion, the second stage of the infringement procedure under Article 226 of the Treaty. If Spain does not amend its legislation within two months, the Commission may refer the case to the Court of Justice.