Press Release: Direct Taxation: The Commission refers Portugal to the European Court of Justice over its discriminatory taxation of lottery winnings

The European Commission decided to refer Portugal to the European Court of Justice for its tax provisions which provide for taxation of the vast majority of foreign lottery winnings whereas winnings from national lotteries or from lotteries part of the European Euromillions network 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.