Press Release: Taxation: Commission refers Spain to the Court of Justice of the European Union for discriminatory tax treatment applied to investments in certain foreign bonds

The European Commission decided on the 26 November 2014 to refer Spain to the Court of Justice of the European Union to ensure that the Spanish legislation, the Inheritance and Gift Tax legislation of the Territorio Histórico de Bizkaia, complied with EU law.

Under the provisions of the Inheritance and Gift Tax legislation of the Territorios Históricos de Alava y Bizkaia, public debt issued by the local administrations (la Comunidad Autónoma del País Vasco, the Diputaciones Forales or the Entidades Locales Territoriales de los tres Territorios Históricos) benefited from a preferential inheritance tax treatment compared to that applied to other similar titles issued in other EU/EEA States. This difference in tax treatment discriminated against investments in public debt issued by other EU Member States or EEA States.

• Primary Source

European Commission: DG Taxation and Customs Union: General Infringements: Infringement cases http://ec.europa.eu/taxation_customs/common/infringements/infringement_cases/index_en.htm

European Commission: Secretariat-General: Application of EU law: Infringements of EU law http://ec.europa.eu/eu_law/infringements/infringements_en.htm

ESO: Background information: February infringements package: main decisions http://www.europeansources.info/record/memo-february-infringements-package-main-decisions/

---