The European Commission unveiled its May 2024 infringements package on 23 May, 2024, detailing legal actions against several EU member states for non-compliance with EU law.
The process begins with a “letter of formal notice”, allowing two months for the member state to address the issues. If unresolved, the Commission issues a “reasoned opinion”, a formal compliance request. Continued non-compliance may lead to referral to the Court of Justice of the European Union (CJEU).
These actions underscore the Commission’s commitment to ensuring uniform tax law compliance across the EU.
Letters of formal notice
Letters of formal notice have been issued to Germany, Hungary, Poland, Romania for failing to exchange timely information on income earned through online platforms as per DAC 7.
Reasoned opinions
Reasoned opinions have been issued to:
- Austria, Belgium, Cyprus, Finland, Italy, Slovenia: For incomplete transposition of the public country-by-country (CbC) reporting directive.
- Cyprus, Latvia, Lithuania, Poland, Portugal, Spain: For not transposing the “Pillar Two directive” on global minimum tax for large enterprises.
- Greece: For discriminatory car taxation and registration practices against imported vehicles.
- Spain: For unequal capital gains tax treatment for nonresidents and restrictions on tax deferrals under the merger directive.
- Sweden: For preliminary income tax withholding on foreign contractors, which the Commission sees as infringing on service provision freedom.
Referral to the CJEU
Referral to the CJEU has been issued to Spain for imposing additional conditions on tax deferrals for company divisions under the merger directive.
Closed proceedings
Greece implemented DAC 7 after initial non-compliance. Hungary addressed issues in its legislation conflicting with the EU Anti-Tax Avoidance Directive. Italy resolved the obligation for non-resident intermediaries in short-term rentals to designate a tax representative. Spain aligned its legislation with the EU directive on tax dispute resolution mechanisms.
