30.4.2007 Official Journal of the European Union L 112/41 COMMISSION DECISION of 20 December 2006 on the aid scheme implemented by France under Article 39 CA of the General Tax Code — State aid C 46/2004 (ex NN 65/2004) (notified under document number C(2006) 6629) (Only the French version is authentic) (Text with EEA relevance) (2007/256EC) 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 called on interested parties to submit their comments pursuant to the provisions cited above (!) and having regard to their comments, Whereas: L PROCEDURE (1) By letter dated 9 February 2004 (D/51178), the Commis- sion sent a request for information to the French authorities concerning the tax-oriented leasing provisions in favour of certain undertakings approved by the Minister for the Budget introduced by Article 77 of Law No 98-546 of 2 July 1998 on various economic and financial mea- sures (3. By letter dated 18 March 2004, the French authorities requested an extension of the period they had been allowed for furnishing the information requested. The Commission received the said information from the French authorities by letter dated 3 May 2004 (A/33117). By letter dated 6 July 2004 (D/54933), the Commission asked the French authorities to produce further information, which it received on 2 August 2004 (A[36007). (2) By letter dated 14 December 2004 (D/205909), the Commission notified the French authorities of its decision to initiate the formal investigation procedure laid down in Article 88(2) of the EC Treaty. The decision was published in the Official Journal of the European Union (%). In it, the Commission invited France and interested parties to submit their comments within a certain time limit. () OJ C 89, 13.4.2005, p. 15. (%) Official Journal of the French Republic No 152 of 3 July 1998, p. 10127. () O] C 89, 13.4.2005, p. 15. 3) By letters dated 6 January 2005 (A[/30266) and 4 February 2005, the French authorities requested an extension of the time limit, which was granted by letters dated 11 January 2005 (D/50220) and 16 February 2005 (D/51190). The Commission received the French authorities’ comments on 15 March 2005 (A[32251). It also received, within the deadline, comments from 16 interested parties, which were forwarded to the French authorities on 9 June 2005 (D[54454). By letter dated 7 July 2005 (A[35587), the French authorities asked the Commission to extend the time limit granted to it for commenting on the interested parties’ comments. The Commission granted the request and the French authorities finally submitted their comments by letter dated 20 July 2005 (A/35981). By e-mail dated 2 March 2006 (A/31655), the French authorities sent the Commission further comments on the scheme at issue. 1. DETAILED DESCRIPTION OF THE SCHEME Pursuant to the first paragraph of Article 39 C of the General Tax Code, the depreciation of assets leased out or otherwise made available is spread over the normal period of use. Article 77 of Law No 98-546 introduces two provisions into the General Tax Code aimed at combating tax avoidance by partnerships and economic interest groupings (EIGs) (*) when they carry out movable asset financing operations. See Articles L 251-1 to L 251-23 of the Commercial Code and Article 239 quater of the General Tax Code. Pursuant to these articles, an EIG is a grouping, endowed with legal personality, of two or more natural or legal persons. Its object is to facilitate or develop the economic activity of its members, and to improve or increase the earnings from that activity. Its activities must be related to the economic activity of its members and may be only ancillary thereto. An EIG is in principle not subject to corporation tax. Each member of the grouping is, however, personally liable to income tax or corporation tax for that part of the profits which accrues to it. Conversely, the EIG's members are jointly and severally liable from their own assets for the grouping’s debts.