L 153/40 Official Journal of the European Union 20.6.2003 COMMISSION DECISION of 16 October 2002 on the aid scheme C 50/2001 (ex NN 47/2000) — Finance companies — implemented by Luxembourg (notified under document number C(2002) 3741) (Only the French version is authentic) (Text with EEA relevance) (2003/438/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, 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 called on interested parties to submit their comments pursuant to the provisions cited above (%), Whereas: I. PROCEDURE In 1997 the Ecofin Council adopted a code of conduct on direct business taxation with a view to putting a stop to unfair practices in this area (3. Further to the undertaking contained in the code, the Commission in 1998 published a notice on the application of the state aid rules to measures relating to direct business taxation (°) (hereinafter referred to as the notice), in which it reaffirmed its determination to apply those rules rigorously and in accordance with the principle of equality of treatment. This procedure is covered by that notice. By letter of 12 February 1999 (D/50716), the Commission asked Luxembourg for information concerning the Luxembourg scheme for finance companies. By letter of 26 March 1999 (A/32604), the Luxembourg authorities informed the Commission that the scheme had been withdrawn on 20 February 1996. () O] C 306, 31.10.2001, p. 2. () 0] C 2, 6.1.1998, p. 1. () O] C 384, 10.12.1998, p. 3. 3) () By letter of 25 April 2000 (D/51738), the Commission asked for further information in view of the fact that, although it had been withdrawn, the scheme might have produced effects andfor still be producing effects. The information was supplied to the Commission by letter from the Luxembourg authorities dated 10 May 2000 (A[34012). By letter SG(2001) D/289743 of 11 July 2001, the Commission informed Luxembourg that it had decided to initiate the formal investigation procedure laid down in Article 88(2) of the EC Treaty in respect of the tax scheme for finance companies. By letter of 14 September 2001 (A/37233), Luxembourg submitted its comments concerning the Commission’s decision. The Commission decision to initiate the procedure was published in the Official Journal of the European Communities (*). The Commission invited interested parties to submit their comments on the measure. It received no comments from interested parties. By letter of 21 March 2002 (D/51274), the Commission asked Luxembourg for further information that was provided by letter of 11 April 2002 (A[32745). II. DESCRIPTION OF THE MEASURE The status of finance companies is governed by Circular LIR No 120 of 14 July 1989 (hereinafter referred to as Circular 120 or the Circular). The Circular was repealed by Circular LIR No 1120 of 20 February 1996. A total of nine companies were approved as finance companies, of which seven became operational. An international group finance company is a resident limited company which is fully liable to tax, is part of (*) See footnote 1.