Belgium referred to EU court over discriminatory taxes

The European Commission referred Belgium to the European Union Court of Justice over what it says are discriminatory tax rules in the Walloon Region, reports Tax News’s Ulrika Lomas. A 2009 decree allows a reduction in personal income tax when shares or bonds are bought in the Investment Fund of Wallonia, but this reduction applies only to residents of Wallonia. Because the decree excludes non-residents, who still earn their income in the region, from the reduction, the Commission believes it is discriminatory. It also argues that it restricts the free movement of workers, which is provided for in EU Treaties. The Commission first acted in this case in November 2011, when it formally requested the Belgian authorities to amend the law. There was no reaction, so the Commission referred the case to court. The referral is the last step in the infringement procedure.