Archive EU tax news

• Issue 2006: nr.006
• Issue 2006: nr.005
• Issue 2006: nr.004
• Issue 2006: nr.003
• Issue 2006: nr.002
• Issue 2006: nr.001
• Issue 2005: nr.003
• Issue 2005: nr.002
• Issue 2005: nr.001

Issue 2006: nr.006

Issue 2006: nr.006: September-October 2006

ECJ cases

• Finland: A-G opinion in the Oy AA case: Finnish group contribution rules
• Germany: Referral to ECJ regarding deduction of EU branch losses: M+T case
• Germany: Referral to ECJ regarding deduction of third state branch losses: Stahlwerk Ergste Westig case
• Germany: ECJ judgment in the Stauffer case: Charitable foundations
• Germany: A-G opinion in the Schwarz / Gootjes-Schwarz and Commission v Germany cases: Tax deduction for school fees
• Germany: Second A-G opinion in Meilicke case: Limitation of temporal effects of ECJ judgments
• Germany: ECJ judgment in the Fidium Finanz case: The granting of credits by credit institutions is primarily covered by Article 49 EC
• Germany: ECJ judgment in the FKP Scorpio Konzertproduktionen GmbH case: German tax at source on certain income for non-residents
• Italy: ECJ judgment in the Banca Popolare di Cremona v Agenzia delle Entrate case: IRAP compatible with Sixth VAT Directive
• Italy: ECJ Order in the Banca Popolare FriulAdria S.p.A. v Agenzia delle Entrate case: State aid to Italian banks for merger transactions
• Italy: AG opinion in the AEM S.p.A. case: Italy’s "golden shares" rules
• Netherlands: ECJ judgment in the N case: Dutch exit tax is disproportional
• Portugal: Portugal v Commission case: State aid in the Azores
• Portugal: Referral to the ECJ of tax treatment of capital gains
• Portugal: ECJ judgment in Commission v Portugal case: Treatment of capital gains arising from transfer of immovable property in Portugal
• UK: ECJ judgment in the Cadbury Schweppes plc and Cadbury Schweppes Overseas Ltd v CIR case: UK CFC rules limited to "wholly artificial arrangements":

National developments

• Finland: Lower level rulings on cross-border group contributions
• Germany: Federal Tax Court holds 5% non-deductible expense on foreign dividends incompatible with EC law - even in third countries cases
• Norway: Extended right to claim refund of Norwegian tax on dividends (inbound and outbound)
• Switzerland: Double Tax Treaty between Switzerland and Spain: Revision Protocol signed, Savings Tax Agreement becomes applicable
• UK: Cross border loss relief: Marks & Spencer appeal hearing
• UK: Implementation of Hoechst decision: Deutsche Morgan Grenfell case

EU developments

• Greece: Commission requests Greece to end discriminatory taxation of dividends from foreign companies
• Ireland, Poland: Commission requests Ireland and Poland to end discrimination against foreign charities
• Italy: Commission requests information from the Italian Government on tax relief for consumer cooperatives
• Spain: Commission opens second infringement procedure against Spain over capital gains discrimination

Issue 2006: nr.005

Issue 2006: nr.005: July-August 2006

ECJ cases

• Germany: A-G opinion on joint filing for spouses resident in different Member States (Finanzamt Dinslaken vs. Gerold Meindl case)
• Hungary: Referral to ECJ regarding freedom of establishment (Cartesio case)
• UK: Referral to ECJ concerning compatibility of UK CFC rules with EC Treaty (Vodafone 2 v HRMC case)

National developments

• Austria: Capital duty on intra-Community movement of effective centre of management (Auer case)
• Finland: Accession of the new Member States to the Arbitration Convention implemented
• Germany: Commission decides to refer Germany to the ECJ in respect of tax legislation concerning pension savings grant: "Riester-Rente”
• Netherlands: A-G opinion on deduction of cross-border losses from own property
• Netherlands: A-G opinion on abuse of Community Law
• Netherlands: Lower court judgement on cross-border loss relief
• Netherlands: Abolition of discriminatory taxation on outbound dividends following complaints by PwC and EFRP
• UK: Implementation of Hoechst decision (Deutsche Morgan Grenfell case)

EU developments

• EU: Commission formally requests Belgium, Spain, Italy, Luxembourg, Netherlands and Portugal to change taxation of outbound dividends
• Belgium: Commission requests Belgium to end discrimination in Flemish registration tax
• Belgium: Commission requests Belgium to end discriminatory taxation of inbound dividends
• Belgium: Commission requests Belgium to end discrimination on personal tax deductions for residents with foreign source income
• Luxembourg: Commission rules that the Holding 1929 tax regime constitutes State aid
• Italy: Commission issues reasoned opinion to Italy for the refund of unduly paid taxes: Commission v Italy case
• Italy: Commission refers Italy to ECJ for failure to amend parent subsidiary directive
• Portugal: Commission refers Portugal to ECJ over discriminatory taxation of foreign banks
• Portugal: Commission requests Portugal to repeal tax exemption on capital gains from public undertakings
• Spain: Commission takes Spain to ECJ over infringement of capital duty directive
• Spain: Commission requests Spain to end infringement of the parent-subsidiary directive
• Sweden: Commission sends formal request to Sweden regarding free movement of services and free movement of capital
• UK: Commission sends formal request to UK to end discrimination against foreign charities

Issue 2006: nr.004

Issue 2006: nr.004: May-June 2006

ECJ cases

• Belgium: ECJ judgement on Belgian Coordination Centre regime (Belgium and Forum 187 ASBL v Commission)
• Denmark: A-G opinion on tax treatment of payments to life insurance and pension insurance schemes of foreign pension institutions (Commission v. Denmark)
• Finland: A-G opinion on Finnish rules on taxation of non-resident pension income (Turpeinen case)
• Finland: Referral to ECJ on Finnish transfer tax
• France: Referral to ECJ on the 3% tax on real estate applied to a Luxembourg holding company
• Germany: Referral to ECJ on valuation of estate for German inheritance tax purposes
• Germany: Referral to ECJ on corporation tax uplift on distributions to non-resident shareholders (Burda Verlagsbeteiligungen case)
• Germany: A-G opinion on liability for withholding tax on payments to non-residents (FKP Scorpio Konzertproduktionen GmbH case)
• Germany: A-G opinion on write-downs on foreign participation (Rewe Zentralfinanz eG)
• Germany: A-G opinion on deductibility of business expenses for non-residents (Centro Equestre da Leziria Grande Ltd case)
• Germany: Referral to ECJ on the non-deductibility of foreign currency losses in respect of foreign exempt permanent establishments (Deutsche Shell case)
• Italy: ECJ judgement on the administrative charge (Commission (of EC) v Italy case)
• UK: A-G opinion on UK thin cap legislation (Test claimants in the Thin Cap group litigation v Commissioners of Inland Revenue case)

National developments

• Germany: Federal tax court judgement on transitional rules applying only to foreign shares in 2001
• Netherlands: A-G opinion on dividend withholding tax on outbound dividends
• Netherlands: Substantial revision of the Corporate Income Tax Act
• UK: New legislation to allow relief for certain EEA losses
• UK: Consultation on UK taxation of foreign profits

EU developments

• Italy: Italy referred to ECJ by the EC over its “golden share” rules (AEM S.p.A. case)
• EU: Council adopts code of conduct on transfer pricing documentation for associated enterprises

Issue 2006: nr.003

Issue 2006: nr.003: March-April 2006 (223kb)

ECJ cases

• Belgium : A-G opinion on tax treatment of inbound dividends: Kerckhaert and Morres v Belgian Government case (C-513/04)
• France : A-G opinion on tax treatment of outbound dividends: Denkavit v French Minister of Economic, Financial and Industrial Affairs case (C-170/05)
• Germany : Second hearing in Meilicke case (C-292/04) on 30 May 2006
• Italy : ECJ judgment on registration duty upon downstream merger: Aro Tubi Filiere S.p.A v Italian Minister of Economic and Financial Affairs case (C-46/04)
• Italy : Referral to ECJ regarding the taxation of EEC contributions: Porto Antico di Genova case (C-427/05 )
• Italy : A-G opinion on IRAP as VAT and temporal restriction: Banca Populare di Cremona v Entrate Ufficio Cremona case (C-475/03)
• Netherlands : A-G opinion on Dutch legislation on emigration of substantial shareholders: N v Tax Inspectorate East / Almelo case (C-470/04)
• Netherlands : Referral to ECJ on regime for Fiscal Investment Funds (Case No. 40.037)
• UK : A-G opinion on UK legislation on intercorporate foreign dividend income: Test claimants in the FII Group Litigation v Commissioners of Inland Revenue case (C-446/04)
• UK : A-G opinion on UK CFC legislation: Cadbury Schweppes plc and Cadbury Schweppes Overseas Limited v CIR UK Controlled Foreign Company case (C-196/04)

National developments

• Germany : Draft legislation on reorganisations: Corporate and tax law
• Netherlands : Supreme Court judgment on extension of the Bosal case to third countries (case 41 815)
• Netherlands : Reduction of dividend withholding tax rate
• UK : High Court judgement in the case of Marks and Spencer plc v Halsey (C-446/03) following the ECJ’s judgment on 13 December 2005

EU developments

• Malta and the European Union: Agreement on amendments to the Maltese tax system
• Commission issues Communication on progress and next steps on the Common Consolidated Corporate Tax base

Issue 2006: nr.002

Issue 2006: nr.002: January-February 2006 (307kb)

ECJ cases

• Belgium: A-G opinion on renewal of the Belgian Coordination Centres (Belgian Government and Forum 187 ASBL v EC (C-182/03 and C-217/03)
• Belgium: Referral to ECJ regarding the application of a minimum tax base for non-residents: R. Talotta v Belgian State case (C-383/05)
• Belgium: Referral to ECJ on the taxation of Belgian residents active in other Member States: L. de Graaf and G. Daniels v Belgian State case (C-436/05)
• Belgium: Referral to ECJ on the geographical condition under the exemption for inheritance tax: Geurts and Vogten v Belgian State case (C-464/05)
• Germany: ECJ judgment on cross-border consideration of own property losses: Ritter-Coulais case (C-152/03)
• Germany: ECJ judgment on non-deductibility of shareholder expenses on foreign tax-exempt dividends: Keller Holding case (C-471/04)
• Germany: Judgement in CLT-UFA case (C-253/03): d ifferent tax rates for residents and non-residents
• Netherlands: ECJ judgment in Senior Engineering Investments B.V. case (C-494/03): no capital duty for subsidiary upon capital contribution by parent company to sub-subsidiary
• Netherlands: ECJ judgment on deemed residence rule inheritance tax not in conflict with free movement of capital: Van Hilten case (C-512/03)
• Netherlands: A-G opinion: on Magpar VI B.V. case (C-509/04): no transfer of lock-up period share-for-share merger upon subsequent qualifying tax exempt merger
• Sweden: ECJ judgment on different taxation of repurchase of shares for residents and non-residents: Bouanich case (C-265/04)
• UK: A-G opinion on different tax treatment of dividends for residents and non-residents: Test claimants Class IV of the ACT Group Litigation v CIR (C-374/045)
• UK: ECJ VAT clause of rights: Joined Halifax, BUPA Hospitals and University of Huddersfield cases (C-255/02, C-419/02 and C-223/03)

National developments

• Denmark: New rules adopted in Danish law to comply with the EU merger directive
• Finland: Advance ruling on Finnish-source dividends received by Luxembourg SICAV
• Ireland: Irish Finance Bill 2006 published
• Netherlands: Differential tax treatment of non-resident and resident associations and foundations abolished
• Netherlands: A-G opinion in Dutch case on extension of “Bosal” decision to third countries (41815)
• Netherlands: Dutch Lower Court judgment on non-deductible expenses for second-tier non-EU participations and less than 25% EU participations (case 04/04448)
• Netherlands: Supreme Court judgment on EC Merger Directive (case 41990)
• Netherlands: A-G opinion on transfer tax upon inheritance by a non-resident: deductibility of costs (39.819)
• Netherlands: Dutch Lower Court judges limitation on interest deduction in cross-border situation not in breach with community law (05/914)
• Norway: Norwegian government withdraws appeal to Supreme Court in the Fokus Bank case
• Portugal: Exit tax upon the transfer of the seat or place of effective management
• UK: Finance Bill 2006: Group relief changes following the Marks & Spencer judgment
• UK: House of Lords judgment in Pirelli case (ACT Class 2)

EU developments

• European Commission closes infringement procedure against Italian cooperative banks
• European Commission takes Italy to the ECJ for failing to recover illegal State aid
• European Commission opens formal State aid investigation into Luxembourg 1929 tax-exempt company holdings
• European Commission requests Portugal to amend discriminatory taxation of foreign banks
• European Commission takes Spain to ECJ over discriminatory capital gains and employment income taxation
• EU-Switzerland: Update on Art. 15 of the Swiss-EU Savings Agreement

Issue 2006: nr.001

Issue 2006: nr.001: November-December 2005 (271kb)

ECJ cases

• Germany: A-G opinion on non-profit organisations: Stauffer case (C-386/04)
• Germany: ECJ Judgement on Cross-border legal mergers: SEVIC Systems AG case (C-411/03)
• Germany: Imputation Credit on foreign dividends: A-G opinion in Meilicke case (C-292/04)
• Italy: ECJ decides on State aid to Italian banks for merger transactions (C-66/02 and C-148/04)
• Portugal: Portugal referred to ECJ on tax treatment of capital gains: EC v Portugal case (C-345/05)
• Portugal: Stamp tax on increase of capital: Optimis v Portuguese Tax Authorities case (C-366/05)
• Sweden: Referral to ECJ for discriminatory capital gains deferral provisions on home sales
• UK: ECJ Judgement in Marks and Spencer Plc v Halsey case (C-446/03)
• UK: CFC: Oral hearing in Cadbury Schweppes Plc case (C-196/04)  

National developments

• Finland: Finnish government’s r esponse to ECJ ruling in Marks & Spencer case
• Finland: Clarifications relating to tax treatment of European companies
• Ireland: Abolition of capital duty on issue of shares
• Italy: Italian tax authorities deem Italian CFC legislation compatible with EU law
• Netherlands: Dutch dividend withholding tax may be abolished gradually in near future
• Netherlands: State Budget 2006: Abolition of capital duty on issue of shares
• Netherlands: Lower Court judgement on non-deductible costs related to non-EU participations
• Portugal: State Budget 2006 and changes to thin capitalisation rules
• Portugal: Amendments of taxation of dividends
• Spain: Contributions to employment pension schemes elsewhere in EU now tax deductible
• Spain: Amendment to the EU Parent-Subsidiary Directive
• UK: Overseas pension schemes: new draft regulations

EU developments

• EC welcomes ECJ judgement in Marks and Spencer case
• EC issues paper on tax policy and EU competitiveness and growth
• EU Tax Commissioner Kovács outlines future of EU tax policy
• EC consults with business and academics on CCCTB
• EU Internal Market Commissioner McCreevy rejects tax harmonisation in Europe
• European Parliament welcomes Commission plans for CCCTB and Home State Taxation for SMEs
• EC adopts code of conduct on transfer pricing documentation in the EU
• EC publishes research paper on formulary apportionment and group taxationEC issues report on structures of the taxation systems in the EU
• EC publishes working document of workshop on ECJ case law and double taxation conventions

Issue 2005: nr.003

Issue 2005: nr.003: September-October 2005 (144kb)

ECJ cases

• Germany: ECJ hearing on non-profit organisations (Stauffer case)
• Germany: Referral to the ECJ on cross-border joint filing for spouses (Meindl case)
• Germany: Referral to the ECJ on most favoured nation treatment under GATS (Rizeni Letoveho Provozu case)
• Italy: A-G opinion on State aid to Italian banks for merger transactions (Cases C-66/02 and C-148/04)
• Netherlands: ECJ judgement on tax treatment of contributions to national security schemes (Blanckaert case)
• Netherlands: Referral to the ECJ on withholding tax on outbound dividends (Case 04/01252)
• UK: Cadbury Schweppes Plc CFC case listed for ECJ hearing on 13 December 2005 (Case C-196/04)

National developments

• Germany: Federal tax court judgment: Lease payments and the Eurowings decision
• Finland: Changes to taxation of non-residents’ Finnish source earned income
• Italy: Lower tax court judgments on IRAP
• Netherlands: Lower court judgment on withholding tax on outbound dividends
• Netherlands: Supreme Court judgment on procedural costs
• Netherlands: A-G opinion on term for refund of withholding tax under the Belgian-Dutch
• Tax Treaty
• Netherlands: Lower Court judgment on cross-border aspects of a fiscal unity
• Portugal: Thin capitalisation rules made compatible with EU law
• Portugal: A-G opinion on State aid on the Azores (Portugal v EC case)
• Spain: Malta and Cyprus no longer on Biscay, Spain, list of tax havens
• Spain: Amendment to Spanish regulation on the EU Savings Directive

EU developments

• Council adopts new EU Directive on cross-border mergers
• Greece: EC requires Greece to suspend illegal tax-exempt fund and opens investigation
• Portugal: EC starts State aid inquiry into capital gains tax exemption for public undertakings

Issue 2005: nr.002

Issue 2005: nr.002 : July-August 2005 (126kb)

ECJ cases

National developments

EU developments

Issue 2005: nr.001

Issue 2005: nr. 001: May-June 2005 (270kb)

ECJ cases

National developments

EU Direct Tax Group activities