On 25 July 2006, the European Commission announced that it had sent Belgium, Italy, Luxembourg, the Netherlands, Portugal and Spain a formal request to end its discriminatory taxation of dividends paid to foreign companies (case reference numbers: 2004/4347 (Belgium), 2004/4350 (Italy), 2004/4352 (Luxembourg), 2004/4352 (Netherlands), 2004/4353 (Portugal) and 2004/4354 (Spain)). Belgium, Italy, Luxembourg, the Netherlands, Portugal and Spain tax outbound dividends more heavily than domestic dividends. Domestic dividends are in those countries not taxed or taxed at a very low rate, whereas outbound dividends are subject to withholding taxes ranging from 5% to 25%. With respect to Belgium, Italy, the...