Most EU tax infringement proceedings are taken where an EU Member State is harsher on foreigners than on its own people. The Spaniards buck this trend.

The Commission has opened a formal investigation under State Aid rules into a provision of the Spanish Corporate Tax Law that allows Spanish companies tax deductions deriving from acquiring a stake in non-Spanish companies.

The Commission is concerned that the scheme provides an advantage for Spanish companies acquiring foreign ones in comparison with acquisitions of other Spanish companies.

The Commission has received several questions from Members of the European Parliament, as well as formal complaints alleging that the Spanish scheme is unlawful. These questions have primarily been in connection with the acquisitions of foreign targets by Spanish companies.

Further information is available at http://europa.eu/rapid/pressReleasesAction.do?reference=IP/07/1469&format=HTML&aged=0&language=en&guiLanguage=en.

Spanish Diplomats

The EU is looking at the income tax treatment of diplomats. The bottom line seems to be that if you are a Spanish diplomat, you're better off (for tax purposes at least) not being from Spain!

More on this (admittedly minority interest) topic at
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/07/1600&format=HTML&aged=0&language=en& guiLanguage=en.