WRITTEN QUESTION No. 1069/98 by Allan MACARTNEY to the Commission. Community tax rates for inward investment
22. 2. 1999 EN Official Journal of the European Communities C 50/7 (1999/C 50/009) WRITTEN QUESTION E-1032/98 by Mark Watts (PSE) to the Commission (6 April 1998) Subject: Ramsgate Ferry Tragedy: failure of Swedish companies to pay fine In September 1994, a walkway between a dock at Ramsgate ferry terminal and a ship waiting to depart suddenly collapsed; 6 passengers were killed and 7 others injured. The Swedish companies who manufactured the walkway, FEAB and FKAB, were subsequently found guilty in British courts, who imposed a fine of £1 million for negligence. These Swedish firms have failed to pay this fine. The companies have recently stated on British television that they have no intention of paying it. They claim that, because the incident occurred before Sweden joined the EU, they are not bound by Community law. Will the Commission join me in condemning these Swedish firms, FEAB and FKAB, for showing no respect for British law or for the victims of the diaster or their families? Will the Commissioner further join me in calling on the companies to pay the fine in full and apologize for their behaviour to date? Supplementary answer given by Mr Kinnock on behalf of the Commission (10 June 1998) Further to its answer of 17 April 1998 (1), the Commission is now able to provide the following additional information. Analysis of the information provided by the Member State concerned relating to the facts referred to by the Honourable Member makes clear that the Commission has no jurisdiction to deal with the questions asked which relate to a matter that is solely for the national authorities. The Commission is therefore unable to take any action in the case to which reference is made. However it appears unlikely that the fact that the accident occurred prior to Sweden joining the Community will have any effect on the possible liability of the Swedish companies under the applicable national law. (1) OJ C 386, 11. 12. 1998, p. 73. (1999/C 50/010) WRITTEN QUESTION E-1069/98 by Allan Macartney (ARE) to the Commission (6 April 1998) Subject: Community tax rates for inward investment Can the Commission confirm whether any Member States give specially reduced tax rates to inward investors and in such a case, which Member States? Is such a practice anti-competitive and against the EC competition rules? Answer given by Mr Monti on behalf of the Commission (3 July 1998) All Member States offer different tax treatment between resident and non-resident investors, reflecting, amongst other things, the general principle, as set out in the Organisation for economic co-operation and development (OECD) model tax convention, that tax should ultimately be levied in the country of residence of the investor rather that in the country of the source of the income. The generally favourable treatment given to interest paid to non-resident individuals and unrestrained competi- tion between Member States in this field can encourage tax evasion, undermine tax revenues within the Community and contribute to a greater effective tax burden on labour than on capital income