Press Release: Direct Taxation: The Commission requests Portugal to amend its discriminatory taxation of lottery winnings

The European Commission sent Portugal a formal request to amend its discriminatory rules that provide for the taxation of foreign lottery winnings whereas winnings from lotteries (Euromilhões e Liga dos Milhões) organised in Portugal by Santa Casa da Misericórdia de Lisboa are exempt from income tax. The Commission considered these rules to be contrary to the EC Treaty and the EEA Agreement, as they restrict the freedom to provide services. This request was in the form of a reasoned opinion, the second stage of the infringement procedure under Article 226 of the Treaty. If Portugal does not amend its law within two months, the Commission may refer the case to the Court of Justice.