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You are here: BAILII >> Databases >> Court of Justice of the European Communities (including Court of First Instance Decisions) >> Commission v Italy (State aid) [1998] EUECJ C-280/95 (29 January 1998) URL: https://www.bailii.org/eu/cases/EUECJ/1998/C28095.html Cite as: [1998] EUECJ C-280/95 |
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JUDGMENT OF THE COURT (Sixth Chamber)
29 January 1998
(1)
(State aid - Fiscal bonus on certain taxes - Recovery of aid - Not absolutely impossible)
In Case C-280/95,
Commission of the European Communities, represented by Antonio Aresu and Anders C. Jessen, of its Legal Service, acting as Agents, with an address for service in Luxembourg at the office of Carlos Gómez de la Cruz, also of its Legal Service, Wagner Centre, Kirchberg,
applicant,
v
Italian Republic, represented by Professor Umberto Leanza, Head of the Legal Department in the Ministry of Foreign Affairs, acting as Agent, assisted by Oscar Fiumara, Avvocato dello Stato, with an address for service in Luxembourg at the Italian Embassy, 5 Rue Marie-Adelaïde,
defendant,
APPLICATION for a declaration that, by failing to adopt the measures necessary to comply with Commission Decision 93/496/EEC of 9 June 1993 on State aid procedure C 32/92 (ex NN 67/92) - Italy (tax credit for professional road hauliers) (OJ 1993 L 233, p. 10) and, in particular, by failing to recover aid granted as from
the 1992 financial year in the form of a tax credit on income tax, municipal tax, or value added tax, unlawfully introduced by Ministerial Decree of 28 January 1992 in favour of professional road hauliers in Italy, the Italian Republic has failed to fulfil its obligations under the EC Treaty,
THE COURT (Sixth Chamber),
composed of: H. Ragnemalm, President of the Chamber, R. Schintgen, G.F. Mancini, J.L. Murray and G. Hirsch (Rapporteur), Judges,
Advocate General: N. Fennelly,
Registrar: D. Louterman-Hubeau, Principal Administrator,
having regard to the Report for the Hearing,
after hearing oral argument from the parties at the hearing on 15 May 1997, at which the Italian Government was represented by Oscar Fiumara and the Commission by Anders C. Jessen and Lauro Pignataro, of its Legal Service, acting as Agents,
after hearing the Opinion of the Advocate General at the sitting on 26 June 1997,
gives the following
enabled the beneficiaries thereof to deduct it from the payment of income tax, corporation tax, municipal tax or value added tax and subsequently also to deduct it on the occasion of the payment by representatives of amounts withheld at source on the earnings of employees and self-employed persons. The date and frequency of the deduction varied according to the type of tax chosen by the beneficiaries as the basis for tax credit. The amount of the latter was calculated on the basis of the difference between the price of gasoline in Italy and the average price charged in other Member States. The total amount of the tax credit was fixed at LIT 275 billion.
'Article 1
The aid in favour of professional road hauliers in Italy in the form of a tax credit on income tax or on municipal tax or on VAT which was introduced by the Ministerial Decree of 28 January 1992 is unlawful in so far as it is granted in breach of the procedural rules laid down in Article 93(3) of the Treaty. The aid is also incompatible with the common market within the meaning of Article 92(1) of the Treaty, in so far as it meets neither the conditions for the exemptions provided for in Article 92(2) and (3) nor the conditions of Regulation (EEC) No 1107/70.
Article 2
The Italian Republic shall abolish the aid referred to in Article 1 and ensure that the aid granted is recovered within two months of the notification of this decision. The aid shall be recovered in accordance with the procedures and provisions of national law, in particular those relating to interest on overdue payments owed to the Government, with interest starting to run from the date on which the unlawful aid was granted.
Article 3
The Italian Government shall inform the Commission within two months of the date of notification of this decision of the measures taken to comply with it.'
apprehension of such difficulties cannot justify a failure by a Member State to apply Community law correctly (see Case C-52/95 Commission v France [1995] ECR I-4443, paragraph 38, and Case C-265/95 Commission v France [1997] ECR I-0000, paragraph 55).
Decree No 600 of the President of the Republic of 29 September 1973, the common provisions on verification of income taxes and Decree No 633 of the President of the Republic of 26 October 1972, the introduction of value added tax and the rules governing it, amended several times), which provides for special procedures, namely the sending of a warning, recovery by distraint and collaboration with the Guardia di Finanza (revenue enforcement officers), in order to obtain the sums owing from the taxpayer.
Costs
27. Under Article 69(2) of the Rules of Procedure, the unsuccessful party is to be ordered to pay the costs. Since the Italian Republic has been unsuccessful, it must be ordered to pay the costs.
On those grounds,
THE COURT (Sixth Chamber)
hereby:
1. Declares that, by not complying with Commission Decision 93/496/EEC of 9 June 1993 on State aid procedure C 32/92 (ex NN 67/92) - Italy (tax credit for professional road hauliers), the Italian Republic has failed to fulfil its obligations under the EC Treaty;
2. Orders the Italian Republic to pay the costs.
Ragnemalm
Murray Hirsch
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Delivered in open court in Luxembourg on 29 January 1998.
R. Grass H. Ragnemalm
Registrar President of the Sixth Chamber
1: Language of the case: Italian.