” “"The rules of the domestic market prohibit any form of discrimination against charities incorporated in other member states": the community law that protects charity work goes beyond the national boundaries. László Kovács, commissioner in charge of taxation and Customs Union, sent a letter today to the UK Government, ordering it to "put an end to discrimination against foreign charities" working on its territory. London grants tax relief to donations made to such charities, provided they are resident there. Such relief does not apply to charities incorporated in other countries: this is what the EU Commission considers "discriminatory" and against the EC Treaty (article 226). Now, the United Kingdom will have two months’ time to act accordingly by repealing the regulations that lay down such discrimination; otherwise, the EU Commission might decide to bring the case to the EU Court of Justice in Luxembourg. The Executive Committee demands that, in order to support charity work, a favourable and similar tax regime should be established. The United Kingdom has effective measures to promote charity work, but insists the Executive Committee "the different treatment" of locally resident ones and foreign ones "must be removed".” “
