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Business                                      The Portugal News • 17 Nov 2018 19
                                                                         NewsNews



       EU wants heavy fine for Portugal over airport slots



       The European Commission has decided to refer Portugal back to the Court of Justice of the EU for its failure to fully and
       completely comply with the Court’s judgment of 2016.

              ccording to a    decision on the penalties
              statement issued  rests with the Court of
              by the EC, the   Justice of the EU.
      APortuguese              In the case that the full
      authorities are said to not  compliance by Portugal is
      have taken the necessary  not achieved and the Court
      measures to comply with  of Justice of the EU
      EU common rules on       confirms the Commission’s
      allocation of airport slots.  view, the daily penalty
      Portugal failed to provide  would have to be paid from
      the necessary safeguards  the date of the judgment on
      regarding the functional  the second referral to the
      and financial            Court or a later date set by
      independence of the slot  the Court until the full  The EU is
                                                       The EU is
                                                       The EU is
                                                       The EU is
                                                       The EU is
                                                       looking to
                                                       looking to
                                                       looking to
      coordinator.             compliance is achieved.  looking to
                                                       looking to
                                                       impose a
                                                       impose a
                                                       impose a
                                                       impose a
      The Commission is calling  The final amount of the  impose a
                                                       heavy fine
                                                       heavy fine
                                                       heavy fine
                                                       heavy fine
      on the Court of Justice of  daily penalty will be  heavy fine
                                                       on Portugal
                                                       on Portugal
                                                       on Portugal
                                                       on Portugal
      the EU to impose a lump  decided by the Court.   on Portugal
                                                       over its
                                                       over its
                                                       over its
                                                       over its
                                                       over its
      sum payment of just under  On 2 June 2016, the Court  allocation of
                                                       allocation of
                                                       allocation of
                                                       allocation of
                                                       allocation of
      two million euros.       of Justice of the EU ruled  airport slots.
                                                       airport slots.
                                                       airport slots.
                                                       airport slots.
                                                       airport slots.
      The Commission is also   that by failing to ensure the  (Photo: Lusa/
                                                       (Photo: Lusa/
                                                       (Photo: Lusa/
                                                       (Photo: Lusa/
                                                       (Photo: Lusa/
      proposing a daily penalty  functional and financial  Mario Cruz)
                                                       Mario Cruz)
                                                       Mario Cruz)
                                                       Mario Cruz)
                                                       Mario Cruz)
      payment of €7,452, if full  independence of the slot
      compliance by the        coordinator, the        Community airports.      have not adopted the    fair competition.       (TFEU), if a Member State
      Member State is not      Portuguese Republic has  More than two years later,  necessary measures to  The Member State has the  has not taken the
      achieved by the date when  failed to fulfil its obligations  argues the EC, “this issue  ensure the coordinator’s  responsibility of separating  necessary measures to
      the Court issues its second  on common rules for the  remains unresolved and  independent status.”  the slot coordinator  comply with a judgment of
      judgment. The final      allocation of slots at  the Portuguese authorities  The slot coordinator is in  functionally from any  the Court of Justice, the
                                                                                charge of allocating    interested party. Moreover,  Commission may refer the
                                                                                landing and take-off slots  the coordinator’s financing  matter to the Court of
      IRS 2018: End-of-Year Fiscal Housekeeping                                 in a non-discriminatory,  system must guarantee its  Justice. Rulings by the
                                                                                neutral and transparent
                                                                                                                                Court are binding on all EU
                                                                                                        independence.
                                                                 N N N N N      manner, one of the      Under Article 260 of the  Member States as well as
       Perhaps you forgot to get an invoice? With 2018
       Perhaps you forgot to get an invoice? With 2018
       Perhaps you forgot to get an invoice? With 2018
       Perhaps you forgot to get an invoice? With 2018                          essential pillars of an  Treaty on the Functioning  on the EU institutions
       Perhaps you forgot to get an invoice? With 2018
       drawing quickly to a close, it’s time to think about
       drawing quickly to a close, it’s time to think about                     aviation system that allows  of the European Union  themselves.
       drawing quickly to a close, it’s time to think about
       drawing quickly to a close, it’s time to think about
       drawing quickly to a close, it’s time to think about
                                                            DENNIS SWING
       tidying up your tax affairs before it’s too late.
       tidying up your tax affairs before it’s too late.
       tidying up your tax affairs before it’s too late.       GREENE
       tidying up your tax affairs before it’s too late.
       tidying up your tax affairs before it’s too late.
      The calculation of expenses to consider in your  statement of non-reimbursed expenses can serve
      annual IRS tax declaration is based on the “e-fatura”  as substantiation for your tax credit.
      system. Be sure to give your tax number (“NIF”)  b)  15% of Health Insurance premiums may be added
      so that shops and businesses can automatically  to general medical expenses. The maximum limit for
      report the transaction. Based on these  the tax credit for the combined expenses is €1,000.
      communications, the Portuguese Tax Authority  Educational Expenses
      (“AT”) will automatically list all of your eligible  If you took a course in Portuguese, computer
      expenses on your personal page on their website,  science or another interest that you might have,
      which you can consult and approve online.  be sure to give your NIB when paying so you will
      Tax Credits                          be eligible for the tax credit.
      You should always ask for invoices with your tax  Housing
      number (“NIF”) to be entitled to tax credits:  If you rented your abode, be sure to complete a
      •  35% of family expenses (i.e. supermarket  proper rental agreement with your landlord. You
      spending, clothing, fuel, water, electricity, gas or  will benefit from a tax break of up to €502.
      other) up to a maximum per taxpayer of €250  Gifts to Charity
      (corresponding €715 pp in expenses);  Finanças will give you an uplift of up to 140% on
      •  15% of health expenditure, up to a maximum of  your contribution to a recognised Portuguese charity,
      €1,000;                              one quarter of which will be granted as a tax credit.
      •  30% of education expenses up to a maximum of  OTHER EXPENDITURES:
      €800;                                a)  Alimony - If you pay court-ordered alimony or
      •  15% of the costs of housing rent, up to a  child support, there is a 20% tax credit when court
      maximum of €502 or 15% of the costs of loan  ordered. You will need to provide the NIB of the
      interest to housing, in the case of own home, up to  recipient.
      a maximum of €296;                   b)  Nursing Homes and Home Care
      •  25% of the costs of Nursing Homes, up to  There is a 25% credit, limited to €403.75, on home
      €403.75;                             care or nursing home fees. Invoices should be in
      •  15% of the VAT paid on each invoice for the  your name with your NIB.
      expenses for restaurant, hairdressing and  Property Sales and CGT
      automobile and motorcycle repairs, up to a  If you sold a property in 2018, be sure to assemble
      maximum of €250.                     the following documents so that you will be ready
      Where taxable income per adult exceeds €7.000,  for tax time: a) deed of acquisition; b) deed of sale;
      the sum of health, education, property, retirement  c) invoices from expenses such as, notary, estate
      home and maintenance is capped at €1.250,  agent, registrations, etc., d) bills from capital
      reducing progressively to nil on incomes exceeding  improvements to the property over the last 12
      €80.000 (per adult). There is a 10% increase to  years. Remember that notaries report all
      the cap per dependent child.         transactions to Finanças so your failure to declare
      Medical Expenses:                    will draw the wrath of tax inspectors, even if you
      a)  Remember to ask your health insurance  move away from Portugal.
      provider for an annual statement about any bills  Dennis Swing Greene is chairman and
      that were not covered by the insurance. When the  International  Tax  Consultant  for
      Insurance Company has the original invoices, the  euroFINESCOs.a. www.eurofinesco.com
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