Tuesday, March 17, 2009

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Yesterday March 16 the European Parliament approved the report dell'eurodeputato German Klaus-Heiner Lehne, belonging to the "European People's Party and European Democrats", containing specific objectives aimed to allow the movement of the head office of a company within the European states and the formal request to the Commission to submit a proposal for a directive to member states.

companies who want to take advantage of that opportunity, they should retain their identity and legal status of the budget as it is up to the time of transfer.

This initiative, as it appears so far, is to facilitate tax competition within the European Union and consequently economic growth seems to also perfectly in line with European principles of "free market "because the company" should enjoy freedom of establishment within the internal market "and the same cross-border migration is a crucial element to complete the internal market."

Responsibility for the supervision of the activities of firms is, therefore, the organs of the host State.

The European Parliament has laid down the principles which should govern transfers, among which are also the following:

- the company concerned should maintain its legal identity and is not changed state budget (so no, its assets nor any of its liabilities) nor its contractual relations;

- from the time of transfer the company would be subject to the legislation of the host;

- the company's operations would be treated for accounting purposes, as was the host member state, the date of transfer;

- the proposed transfer of the company, who wants to use them, should list in detail the rights granted to shareholders, employees and creditors;

- the proposal to transfer complete all that is necessary should be brought to the attention of members and representatives of the employees of company within a reasonable period prior to the date of the shareholder meeting called to approve the transfer;

- bodies of the company concerned should make a report to explain and justify the legal and economic aspects of the proposal and indicate the consequences for shareholders, creditors and employees;

- the legal position of employees of the company transferring would be governed by the laws of the host Member State, but this condition would occur if the host state does not provide for "at least the same level of participation as operated in the State of origin" and the legislation does not give, employees of establishments society, in other Member States, "the same right to exercise their rights to participate in employee benefit before the transfer."

So the move would only legal business, resulting in different submission of the business transferring to the control bodies of the host State, and these would give rise to competition tax between member states with more favorable to business and thus also for the labor market.


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