EU COMMISSION TAKES FURTHER STEPS TO END ILLEGAL TAX BREAKS IN THE ITALIAN AND CYPRIOT YACHT INDUSTRIES

A news release from the EU on 25th July advised that the Commission is taking further steps to end illegal tax breaks in the yacht industries of Italy and Cyprus, first brought to light in the Paradise Papers leaks.  The legal proceedings also form part of the Commission’s ongoing efforts to stamp out unfair tax avoidance practices in the EU.  The Commission has decided to refer Italy to the CJEU for its failure to address an illegal system of exemptions for fuel used to power chartered yachts in EU waters.  At the same time, the Commission has decided to send reasoned opinions to Italy and Cyprus for not levying the correct amount of VAT on the leasing of yachts.  Tax breaks of this type can lead to major distortions of competition.  If Cyprus and Italy do not act within the next 2 months on these reasoned opinions, the Commission may decide to bring the cases before the CJEU.

http://europa.eu/rapid/press-release_IP-19-4265_en.htm

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s