Capital Gains Tax: Commission Opens a Second Infringement Procedure Against Spain
The European Commission has opened a second infringement procedure against Spain for not having complied with a judgement of the European Court of Justice (ECJ) on capital gains tax.
The Court decided that Spain violated the principles of free provision of services and of free movement of capital by maintaining a less favourable tax regime on capital gains on shares of companies not established in Spain. If a Member Sate does not comply with a judgment of the ECJ, the European Commission, in application of Article 228 EC, starts a second infringement procedure. If the case ends up again before the Court, the latter may impose a lump sum or penalty payment on the State concerned.