Brussels, 18 September 2008
According to the Portuguese rules, income earned in Portugal in the form of prizes or winnings from competitions, games or gambling is subject to taxation. However, an exemption applies to lottery winnings from Euromilhões e Liga dos Milhões, lotteries and games organised by the Santa Casa da Misericórdia de Lisboa, an entity carrying out activities of social interest.
The Commission considers that the exemption provided in the Portuguese legislation constitutes a discrimination prohibited by the EC Treaty, as the favourable treatment is not open to other EU entities also carrying activities of social interest as Santa Casa da Misericórdia de Lisboa does.
Taxing the winnings from foreign but not national lotteries cannot possibly be justified as a measure to avoid the damaging consequences of gambling.
The Commission's cases reference number is 2007/2138.
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