Press Release: Direct taxes: The European Commission formally requests Belgium to change its provisions with regard to the higher taxation of dividends and interest received by foreign investment funds

The European Commission formally requested on 28 January 2010 Belgium to change its tax provisions which result in a higher tax burden on dividends and interest paid to foreign investment funds compared to similar payments made to domestic investment funds. The request takes the form of a reasoned opinion (second step of the infringement procedure provided for in Article 258 of the Treaty on the Functioning of the EU (TFEU). If there is no satisfactory reaction to the reasoned opinion within two months, the Commission may decide to refer the matter to the Court of Justice of the European Union.