21.12.2006 Official Journal of the European Union L 366/47 COMMISSION DECISION of 19 July 2006 on aid scheme C 3/2006 implemented by Luxembourg for ‘1929’ holding companies and ‘billionaire’ holding companies (notified under document number C(2006) 2956) (Only the French text is authentic) (Text with EEA relevance) (2006/940/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Commu- nity, and in particular the first subparagraph of Article 88(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having invited interested parties to submit their comments in accordance with the above-mentioned provisions (1), Whereas: 1 In 1997 the Council adopted a Code of Conduct for Business Taxation with a view to tackling harmful tax competition (). In accordance with the commitments made under the Code, in 1998 the Commission published a notice on the application of state aid rules to measures relating to direct business taxation (*) emphasising its determination to apply those rules rigorously and to respect the principle of equal treatment. The present proceeding is to be seen in the context of that notice. L PROCEDURE By letter of 12 February 1999 (D/50716), the Commission requested Luxembourg to furnish it with preliminary information on companies exempted from taxes under a 1929 Law. By letter of 26 March 1999 (A[32604), the Luxembourg authorities provided a description of the 1929 scheme of exemption for holding companies (hereinafter called ‘exempt 1929 holding companies), as amended by the Law of 29 December 1971 and the Law of 30 November 1978. By letter of 5 July 2000 (D/53671), the Commission requested Luxembourg to provide further information on exempt 1929 holding companies, including information on the Law of 17 December 1938 on the arrangements applicable to so-called billionaire holding companies (hereinafter called ‘exempt billionaire holding companies’). () O] C 78, 31.3.2006, p. 2. ® 0JC 2, 61.1998, p. 1. () O] C 384,10.12.1998, p. 3. By letter of 20 July 2000 (A/36150), the Luxembourg authorities provided the further information requested. By letter of 26 March 2001 (D/51279), the Commission requested additional information, including the texts of the laws establishing the tax schemes in favour of exempt 1929 holding companies and exempt billionaire holding companies. By letter of 11 May 2001 (A[33928), the Luxembourg authorities provided the information requested. By letter of 11 February 2002 (D/50571), the Commission informed the Luxembourg authorities of its preliminary views about the possible aid nature of Luxembourg’s tax provisions, and invited them to submit their comments in accordance with the cooperation procedure with respect to existing aid schemes introduced by Article 17(2) of Council Regulation (EC) No 659/1999 laying down detailed rules for the application of Article 93 [now Article 88] of the EC Treaty (*). Following a meeting with the Commission on 19 April 2002, the Luxembourg authorities provided the requested comments by letter of 2 May 2002 (A/33288). A second meeting took place between the Luxembourg authorities and the Commission on 17 October 2002. With a view to finalising the preliminary examination of the scheme in question pursuant to the procedure laid down in Article 17(2) of Regulation (EC) No 659/1999, the Commission requested Luxembourg by letter of 9 March 2004 (A[51743) to update the information concerning the scheme by submitting all new proposed or approved provisions relating to the tax treatment of exempt 1929 holding companies. By letter of 6 May 2004, Luxembourg submitted the requested information to the Commission. On 15 September 2004, a third meeting took place between the Luxembourg authorities and the Commission during which the Commission was informed of certain aspects of draft law No 5231 proposing certain amend- ments to the Law of 31 July 1929 on the exempt 1929 holding companies tax scheme. () OJ L 83, 27.3.1999, p. 1. Regulation amended by 2003 Act of Accession.