Press Release: Direct taxation: Commission decides to refer Belgium to Court of Justice over Walloon inheritance and gift tax laws

The European Commission on 14 July 2005 decided to refer Belgium to the European Court of Justice because in its view the Walloon inheritance and gift tax laws discriminated against foreign charities. These laws at the time provided for reduced taxation of legacies and gifts to charity organisations, but could discriminate against foreign charity organisations. The Commission considered that this violated the prohibition of discrimination on grounds of nationality and the freedom of establishment (Articles 12 and 43 and 48 of the EC Treaty).