EU: Infringement Proceedings against Belgium
The European Commission has closed infringement proceedings against Belgium in the areas of tax relief for houses and tax discrimination against foreign pension funds.
* Tax Relief for Houses
The European Commission had sent Belgium a formal request in January 2007 to amend its legislation concerning tax relief for owner-occupied and secondary houses. Belgium allowed such relief on condition that the houses were located in Belgium.
* Foreign Pension Funds
The European Commission had sent a formal request to Belgium in 2003 to amend its tax legislation under which pension contributions paid to foreign funds were not tax deductible while contributions paid to domestic funds were. Following no action on the part of Belgium to amend its legislation, the General Counsel of the European Court of Justice (ECJ) delivered his conclusions on 6 October 2006 that the Belgian tax rules were discriminatory.
In its reply to the General Counsel, the Belgian government did not contest the conclusions and announced necessary legislative measures to remove discrimination from its legislation.