13.8.2003 Official Journal of the European Union L 204/51 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 17 February 2003 on aid scheme C54/2001 (ex NN55/2000) Ireland — Foreign Income (notified under document number C(2003) 569) (Only the English text is authentic) (Text with EEA relevance) (2003/601EC) 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 for business taxation (*) with the objective of tackling harmful tax competition; it subsequently estab- lished a Group to assess tax measures that fall within the scope of that Code. Following its commitment taken by way of the Code, the Commission published in 1998 a Notice on the application of State aid rules to measures relating to direct business taxation (), stressing its deter- mination to apply them rigorously and to respect the principle of equality of treatment. It was within this framework that the Commission embarked upon its examination of measures identified as harmful by the 08, 1.11.2001, p. 2. JC3 JC2 61.1998,p. 1. JC3 84,10.12.1998, p. 3. Code of Conduct Group. In this context, the Commis- sion notes the parallelism between the work of the Code of Conduct Group and the Community's policy in respect of State aid, which share a common goal of abol- ishing measures which distort or threaten to distort competition within the single market. The Commission also notes the progress made towards achieving the ulti- mate objective of eliminating harmful tax competition and specifically the steps taken by Member States to abolish, or to remove the harmful features from, those tax measures identified as harmful. By letter dated 29 May 2000 (D/53182), the Commis- sion requested information on the so-called Foreign Income scheme. Following an extension to the deadline, Ireland replied by letter dated 19 July 2000 (A/36170). A second request for information was sent on 8 August 2000, and a reminder was sent on 13 September 2000. Ireland replied on 20 September 2000 (A[37792). By letter dated 11 July 2001 (SG 2001 D/289754), the Commission informed Ireland that it had decided to initiate the procedure laid down in Article 88(2) of the EC Treaty in respect of the Foreign Income scheme. By letter dated 4 October 2001 (A/37839), Ireland submitted its observations.