The Worldwide Religious News website reports today (October 13, 2010) that the European Union (EU) warned yesterday that Italian tax provisions that allow the Catholic Church to avoid paying taxes on its property may run afoul of EU rules against state aid.
Vatican-owned properties on Italian soil currently are all exempt from the municipal tax on property because they are classified as non-commercial -- even in the case of religious hostels and hospitals that actually make a profit.
In a statement, the EU said its "preliminary view is that the relevant provisions could provide a selective advantage to their beneficiaries' commercial activities and therefore constitute illegal state aid under EU rules."
The EU added that so far, "Italian authorities have not provided sufficient evidence to enable the commission to consider that the measures at issue could be justified."
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