Double Taxation- When Will it be Your Turn?

The last sentence in Article 13 of "Protocol (No 36) on the privileges and immunities of the European Communities (1965)" to the EC Treaty says that officials and other servants of the Communities "shall be exempt from national taxes on salaries, wages and emoluments paid by the Communities".

The governments of all Member States have signed this text into law, so we are disappointed when they deliberately try to break their own rule.

This form of governmental white collar crime has occurred several times in the past. Even municipal administrations have tried their luck and so have the highest ministries in national capitals. The most recent attempt has been made by the Greek government.

We are glad that the Commission is making some attempts to protect us from what is really pseudo-legalized extortion by national authorities. "The Commission has started a thorough analysis of the pertinent Greek legislation in order to decide whether or not that legislation and/or its application to Community officials or former officials constitute an infringement by Greece of European Union law.".

But it goes on to warn that "With regard to the tax bills sent out by the Greek authorities to be paid by the end of July, it should be noted that neither the opening of a file by the Commission nor the possible launch of an infringement procedure has the effect of suspending the enforcement of national law. The conditions concerning the payment of the requested amounts depends therefore exclusively on the relevant Greek tax laws." (ibid.).

Considering how much trouble the Commission itself has encountered in clawing back money from the Greek government this is bad news for us.

Here is some unrequested advice from SID to the Commission. According to Article 12a of Protocol 36 officials and other servants are "immune from legal proceedings in respect of acts performed by them in their official capacity, including their words spoken or written. They shall continue to enjoy this immunity after they have ceased to hold office".

Therefore, the attempted double taxation can be completely defeated by a very simple strategy. The Commission has only to order us all, in writing, to not report our EU earnings to any national authority and to pay no taxes on that income to them. In this way we could watch the Commission's lawyers battle their Greek counterparts in the Court of Justices from behind the protective screen of our immunity.