Press Release: Direct taxation: Commission considers that the Portuguese tax amnesty was contrary to EC law

The European Commission considers that the 2005 Portuguese tax amnesty did not respect the free movement of capital, since it provided for regularization at a preferential penalty rate of 2.5% for investments in Portuguese government bonds (instead of 5% in any other assets).Therefore, the Commission has sent a reasoned opinion under Article 226 of the EC Treaty requesting Portugal to eliminate this violation of the EU law by applying the same fiscal treatment to all regularizations made in 2005. If Portugal does not take the necessary steps to comply with the EU law, the Commission may decide to take that Member State to the Court of Justice.