Keywords
Summary

Keywords

1 . AGRICULTURE - COMMON ORGANIZATION OF THE MARKETS - INTERVENTION BY THE MEMBER STATES - INDIRECT TAXATION OF AGRICULTURAL PRODUCTS - PERMISSIBILITY - CONDITIONS

2 . AGRICULTURE - COMMON AGRICULTURAL POLICY - FINANCING BY THE EUROPEAN AGRICULTURAL GUIDANCE AND GUARANTEE FUND - PRINCIPLES - AID GRANTED IN BREACH OF COMMUNITY RULES - FAILURE TO COMPLY WITH REQUIREMENT OF FORMAL EVIDENCE - CHARGE OF EXPENDITURE TO THE FUND - NOT PERMISSIBLE - EQUALITY OF TREATMENT OF TRADERS

( REGULATION NO 729/70 OF THE COUNCIL , ART . 8 , AND COUNCIL REGULATION NO 567/76 , ARTS 2 ( 3 ) AND ( 5 ) AND 6 ( 3 ) )

Summary

1 . AT THE PRESENT STAGE OF DEVELOPMENT OF COMMUNITY LAW , CHARACTERIZED BY ONLY PARTIAL HARMONIZATION IN THE AREA OF TAXATION , THE MEMBER STATES HAVE RETAINED EXTENSIVE POWERS IN THAT AREA , IN PARTICULAR THE POWER TO LEVY INDIRECT TAXES ON FOODSTUFFS . THE MEMBER STATES MUST NEVERTHELESS , IN EXERCISING THOSE POWERS , COMPLY WITH THE RELEVANT PROVISIONS OF THE TREATY . IN AGRICULTURAL MATTERS THE MEMBER STATES MUST , IN EXERCISING THEIR OWN FISCAL POWERS , COMPLY IN PARTICULAR WITH THE BASIC RULE THAT THEY MUST REFRAIN FROM ADOPTING ANY MEASURE CAPABLE OF INTERFERING WITH THE FUNCTIONING OF THE MACHINERY ESTABLISHED BY THE COMMON ORGANIZATIONS OF THE MARKET .

2 . WHERE THE COMMUNITY RULES ONLY AUTHORIZE PAYMENT OF AN AID ON CONDITION THAT CERTAIN FORMAL EVIDENCE IS SUPPLIED ON PAYMENT , AN AID PAID WITHOUT COMPLYING WITH THAT CONDITION IS NOT IN ACCORDANCE WITH COMMUNITY LAW AND THE EXPENDITURE THEREBY INCURRED CANNOT THEREFORE BE CHARGED TO THE FUND ON THE CLEARANCE OF THE ACCOUNTS FOR THE YEAR IN QUESTION .

REGULATION NO 729/70 OF THE COUNCIL OF 21 APRIL 1970 ON THE FINANCING OF THE COMMON AGRICULTURAL POLICY PERMITS THE COMMISSION TO CHARGE TO THE FUND ONLY SUMS PAID IN ACCORDANCE WITH THE RULES LAID DOWN IN THE VARIOUS SECTORS OF AGRICULTURAL PRODUCTION WHILE LEAVING THE MEMBER STATES TO BEAR THE BURDEN OF ANY OTHER SUM . A STRICT INTERPRETATION OF THE CONDITIONS UNDER WHICH EXPENDITURE IS TO BE BORNE BY THE FUND IS NECESSARY BECAUSE THE MANAGEMENT OF THE COMMON AGRICULTURAL POLICY IN CONDITIONS OF EQUALITY BETWEEN TRADERS IN THE MEMBER STATES REQUIRES THAT THE NATIONAL AUTHORITIES OF A MEMBER STATE SHOULD NOT , BY THE EXPEDIENT OF A WIDE INTERPRETATION OF A GIVEN PROVISION , FAVOUR OR TREAT UNFAVOURABLY TRADERS OF THAT STATE IN COMPARISON WITH THOSE OF OTHER MEMBER STATES .