[ARTICLE 58]

SINGLE MARKET:

EU INTERFERES IN UK TAX MEASURES WITH THIRD COUNTRIES

[ARTICLE 58]

AMENDMENT TO: Treaty of Lisbon amending the Treaty on European Union and t= he Treaty establishing the European Community (Lisbon, 13 December 2007)<= /span>

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Policy Area: Treaty on the Functioning of the European Union, Part Three Policies and Internal Actions of the Union, Title III – Free movement of persons, services and capital, Chapter 4 ̵= 1; Capital and payments, Article 58

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<= st1:City w:st=3D"on">Lisb= on Treaty: =

“= ;61) In Article 58, the following new paragraph 4 shall be added:

"= 4. In the absence of = measures pursuant to Article 57(3), the Commission or, in the absence of a Commission decision within three months from the request of the Member State concerned, the Council, may adopt a decision stating that restrictive tax measures ado= pted by a Member State concerning one or more third countries are to be consider= ed compatible with the Treaties insofar as they are justified by one of the objectives of the Union and compatible with the proper functioning of the internal market. The Council shall act unanimously on application by a Memb= er State.".”

Consolidated Treaty Article(s):

“= ;Article 58

1. The provisions of Article 56 shall be without prejudice to the r= ight of Member States:

(a) to apply the relevant provisions of = their tax law which distinguish between taxpayers who are not in the same situati= on with regard to their place of residence or with regard to the place where t= heir capital is invested;

(b) to take all requisite measures to prevent infringements of nati= onal law and regulations, in particular in the field of taxation and the prudent= ial supervision of financial institutions, or to lay down procedures for the declaration of capital movements for purposes of administrative or statisti= cal information, or to take measures which are justified on grounds of public policy or publ= ic security.

2. The provisions of this chapter shall be without prejudice to the applicability of restrictions on the right of establishment which are compatible with this Treaty.

3. The measures and procedures referred to in paragraphs 1 and 2 sh= all not constitute a means of arbitrary discrimination or a disguised restricti= on on the free movement of capital and payments as defined in Article 56.̶= 1;

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Expl= anation:

The Li= sbon Treaty adds paragraph (4) to this Article which states that "In the absence of measures pursuant to Article 57(3), the Commission or, in the absence of a Commission decision within three months from the request of the Member State concerned, the Council, may adopt a decision stating that restrictive tax measures adopted by a Member State concerning one or more t= hird countries are to be considered compatible with the Treaties insofar as they= are justified by one of the objectives of the Union and compatible with the pro= per functioning of the internal market. The Council shall act unanimously on application by a Member State." <= /o:p>

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The EU’s interference in UK tax measures on third countries is unnecessary and will fail to take into account the UK’s need for a competitive economy, which requires freedom from the burdens of over-regulation within the internal market.