91997E3565

WRITTEN QUESTION E-3565/97 by Graham Mather (PPE) to the Commission (13 November 1997)

Subject: Commission communication on tax coordination (COM(97) 495)

At the Ecofin meeting of 13 October 1997, this Commission Communication was debated for the first time. The document proposes a package of measures to tackle what it calls 'harmful tax competition'. The Council called on the Commission to bring forward a new Communication, by 12 November at the latest, taking into account the results of this meeting and of the meeting of the Tax Policy Group of 20 October. Ministers unanimously underlined their intention to reach political agreement on this matter at the Ecofin meeting on 1 December 1997.

With regard to the taxation of capital income, Point 19 III of the Communication states that 'every Member State should either operate a minimum withholding tax or provide information on savings income to other Member States'. Point 19 VI then states that 'Where a Member State does not use the exchange of information option, it should apply the withholding tax at a minimum level. The minimum tax rate should be specified at a level which is sufficient to ensure an acceptable level of taxation of cross-border savings'.

How will the 'acceptable level' be calculated and agreed?

Joint answer to Written Questions E-3563/97, E-3564/97, E-3565/97, E-3566/97 and E-3567/97 given by Mr Monti on behalf of the Commission (3 February 1998)

The Commission would like to draw the attention of the Honourable Member both to its new communication of 5 November 1997 ((COM(97) 564 final. )) and the conclusions of the Ecofin Council meeting of 1 December 1997 concerning taxation policy.

Within these conclusions, the Council approved a text on the taxation of savings containing four points that might form the basis for a new proposal for a directive.

As was anticipated by the Commission in its own above mentioned communication, it is the Commission's intention to present such a proposal very quickly, in principle by April 1998.

The Commission considers it premature to comment at the present stage on the sensitive and delicate questions raised by the Honourable Member.

The Commission is still reflecting and its position will be clearly stated in the proposal for a directive.