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IPA concerns go official

The Budapest Court (FB)’s report on the ‘‘local business tax’’ (IPA) procedure was published on the EU’s official website.

FB started the initial procedure in connection with claims by Vodafone Zrt and Innomed Medical Technology Zrt, who want to have the tax outlawed on grounds that it is against EU regulations. FB posed three questions for the European Court of Justice:

1. Did Hungary receive a temporary exemption and is it allowed to maintain IPA until the end of 2007.

2. Is there another EU country with a tax based on net revenue adjusted by the value of procurement, mediated services and material costs.

3. Is it against the EU directives if tax authorities, instead of examining whether IPA is compliant with community law, suggest that tax payers should make self-corrections in their declaration forms. (Napi Gazdaság)