EU tax news

EU tax news is a free bimonthly newsletter with summaries of all the relevant ECJ and national court cases and decisions, and EU policy initiatives related to EU direct tax law and state aid. The newsletter is prepared by members of PwC' EU direct tax group (EUDTG) from across Europe.

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• Issue 2011: nr.006
• Issue 2011: nr 005
• Issue 2011: nr.004
• Issue 2011: nr.003
• Issue 2011: nr.002
• Issue 2011: nr.001
• Issue 2010: nr.006
• Issue 2010: nr.005
• Issue 2010: nr.004
• Issue 2010: nr.003
• Issue 2010: nr.002
• Issue 2010: nr.001
• Issue 2009: nr.006
• Issue 2009: nr.005
• Issue 2009: nr.004
• Issue 2009: nr.003
• Issue 2009: nr.002
• Issue 2009: nr.001

Below you will find the 2009-2011 issues of the EUDTG's bi-monthly EU tax newsletter. For older issues please visit the archive.

 Issue 2011: nr.006

ECJ cases

• Belgium AG opinion on non-deductibility of payments for supply of services to resident of another Member State or to foreign establishment: SIAT SA v. Belgium case
• Belgium ECJ referral on the potential application of the Parent-Subsidiary Directive on liquidation proceeds: Punch Graphix Prepress Belgium NV v. Belgium case
• Belgium ECJ referral on compatibility of dividend withholding tax with free movement of capital: Tate & Lyle Investments v. Belgium case
• France ECJ judgment on French avoir fiscal and précompte with freedom of establishment and free movement of capital: Accor case
• Germany ECJ judgment on withholding tax on outbound dividends: Commission v. Germany case
• Germany ECJ referral on interpretation of EU-Swiss Agreement on free movement of persons
• Portugal ECJ decision on discriminatory dividend taxation (pension funds): Commission v. Portugal
• Spain ECJ referral on discriminatory inheritance and gift tax rules

National developments

• Belgium Applicable statute of limitation for claims introduced by non-resident companies for recovery of Belgian withholding tax
• Germany Interpretation of "commercially maintained business establishment" in CFC legislation
• Italy Supreme Court judgment on deadline for submissions of refund claims in case of ECJ decisions
• Netherlands Dutch Tax Package 2012: legislative proposals
• Poland Successful cases of recovering withholding tax paid by EU and EEA funds
• Poland Changes to the corporate income tax law with regard to investment funds
• Portugal Proposed 2012 State Budget Law
• Portugal Cyprus and 1929 Luxembourg holdings scrapped from list of tax havens
• Spain Leading tax firms establish Tax and Competitiveness Foundation
• United Kingdom Thin Cap Group Litigation: no re-referral to ECJ
• United Kingdom Court of Appeal finds for the taxpayer in Marks & Spencer Plc case on cross-border group relief
• United Kingdom Trustees of the BT pension scheme v HMRC - Pension fund claims for tax credits on FIDs / EU dividends
• United Kingdom Mindpearl AG v HMRC - Cross border "transfer of trade" treatment denied
  

EU developments

• EU European Commission proposal for a Directive on Financial Transaction Tax (FTT)
• EU EU leaders Euro Summit Statement on pragmatic tax coordination of tax policies in the Euro-zone
• EU Incoming Danish EU Presidency tax priorities
• EU EU Tax Commissioner Šemeta speeches on EU tax policy and tax competition in Europe
• EU EC report on 'Tax reforms in EU Member States: Tax policy challenges for economic growth and fiscal sustainability'
• EU European Commission adopts FISCALIS proposal
• Germany European Commission launches infringement procedure on "transfer of hidden reserves"

CCCTB

• EU Update on the CCCTB

Stateaid

• Italy ECJ decision on tax advantages granted to cooperative companies: Paint Graphos case
• EU Recast of EU State Aid Guidelines for Maritime Transport

 Issue 2011: nr.005

ECJ cases

• Belgium ECJ referral on compatibility of the Belgian tax treatment of life insurance with the freedom of establishment
• Belgium ECJ referral on compatibility of Notional Interest Deduction Regime with the freedom of establishment
• Germany ECJ judgement on add back of interest payments: Scheuten Solar Technology case
• Italy ECJ referral on the compatibility of the Italian provisions on contribution in kind with the EU merger Directive
• Luxembourg ECJ referral on Luxembourg Net Wealth Tax requirements
• Netherlands AG opinion on exit tax: National Grid Indus case

National developments

• Belgium Proposed amendment to spread taxation regime for capital gains on fixed assets
• Denmark National Tax Tribunal decision on ”beneficial ownership” of interest payments
• Germany Reading down of provision on non-deductible expenses
• Germany Lower Fiscal Court decision on German transfer pricing documentation requirements
• Italy Circular Letter on refund of withholding tax on outbound dividends
• Netherlands District Court decision on withholding taxes and investment funds
• Netherlands Dutch Supreme Court holds that on-charged cartel fine is not deductible
• Netherlands Deductibility of mortgage interest by non-resident
• Poland New legislation to abolish discriminatory treatment of foreign investment funds and pension funds
• Poland Ministry of Finance’s view on the application of free movement of capital principle to third country investment funds and pension funds
• United Kingdom Thin Cap Group Litigation: Leave to appeal to Supreme Court refused

EU developments

• EU Franco-German and European Commission proposals for Financial Transaction Tax (FTT)
• EU Fourth meeting of EU’s Tax Policy Group discusses fight against tax fraud and tax avoidance, including bilateral Germany and UK deals with Switzerland
• EU Results of EU Commission’s consultation on cross-border dividends published

CCCTB

• EU Update on the CCCTB
• Finland Finnish Government statements on the EC’s CCCTB Proposal

Stateaid

• Germany Lower Fiscal Court grants suspension of recovery

 Issue 2011: nr.004

ECJ cases

• Austria ECJ judgment on treatment of donations to science and research institutions: EC v. Austria
• Finland ECJ referral on deductibility of foreign capital losses from domestic capital gains
• France ECJ judgement on taxation of immovable properties: Prunus case
• France ECJ referral on withholding tax treatment of dividends paid to foreign investment funds
• France ECJ referral on taxation of taxation of dividends paid to non-resident pension funds and investment funds
• Germany ECJ judgment on imputation tax credit for inbound dividends: Meilicke II case
• Germany AG opinion on add back of interest payments: Scheuten Solar Technology case
• Portugal AG opinion on taxation of dividends obtained by non-resident pension funds: EC v. Portugal

National developments

• Belgium Proposed amendments to make Belgian tax acts compatible with EU Law
• Denmark Binding tax ruling on „beneficial ownership" of dividend payments
• Netherlands Supreme Court rejects „per element" approach
• PwC EU Tax News 2
• Netherlands New regime proposed for currency results on participations following the Deutsche Shell case
• Netherlands District Court of Haarlem allows “Papillon” fiscal unity
• Poland Corporate Income Tax exemption for EU/EEA investment funds: recent developments
• Portugal Proposed changes in corporate income tax for 2011 - 2014
• United Kingdom Thin Cap Group Litigation: Leave to appeal to Supreme Court refused
• United Kingdom Consultation on Controlled Foreign Companies (CFC) reform
• United Kingdom Cross-border loss relief: First-Tier Tribunal urges referral on grouping test

EU developments

• EU Conclusions of the ECOFIN Council of 20 June 2011, including EU Presidency progress report on the Code of Conduct on Business Taxation
• Estonia European Commission requests Estonia to amend discriminatory tax rules for non-resident investment funds
• Netherlands European Commission asks The Netherlands to remedy fiscal discriminatory rules on fiscal unities
• Poland European Commission formally requests Poland again to end fiscal discrimination against foreign investment funds and pension funds
• United Kingdom European Commission takes second step of infringement proceedings against UK CFC rules

CCCTB

• EU Update on the European Commission's CCCTB Proposal

Stateaid

• Italy ECJ judgment on failure to recover unlawful State aid in favour of companies participating in trade fairs abroad: EC v. Italy
• Spain European Commission launches an investigation into tax benefits granted by Spain for purchases of ships

 Issue 2011: nr.003

ECJ cases

• Belgium ECJ referralon (former)tax credit system relating to the use of tangible assets: Waypoint Aviation SA v. État Belge case
• Finland ECJ referral onexchange of shares in transactionswith a company resident in an EEA member state
• Finland ECJ referral onfinal tax lossesin cross-border mergers
• Germany ECJ judgment on deductibility of perpetual annuity: Schröder caseGermanyECJ referral ontax credit limitation
• Netherlands ECJ referral ontax discrimination against foreign charities
• Portugal ECJ judgment on mandatory appointment of tax representative for non-residents
• Portugal ECJ judgment on Portuguese scheme for tax adjustment of financial assets not located within Portugal

National developments

• Finland Central Tax Board advance ruling on withholding tax on dividends from a Finnish company to a Norwegian investment fund
• Finland Supreme Administrative Court annuls earlierjudgementon applicability of CFC legislation in intra-EU situations
• Germany Federal FiscalCourt decision on taxation of Liechtenstein private foundations
• Germany Federal Finance Ministry accepts EU/EEA companies with foreign statutory seat but domestic place of management as lower tier members in fiscal unities
• Italy Finance Ministry issues draft implementing decree about the Home State Taxation regime
• Netherlands Dutch double inheritance taxation not in breach of EU Law
• Netherlands Non-deductibility competition fine not in breach of EU Law
• Netherlands Dutch exit tax on pension rights as such not in breach of EU Law
• Netherlands Government proposes interim-regime for currency results on participations
• Portugal Taxation of capital gains realized on the sale of shares held on micro and small companies
• Spain Spanish government publishes Sustainable Economy Act

EU developments

• EU European Commission issues proposal for a recast of the EU Parent-subsidiary Directive
• EU Conclusions European Council Spring summit held on 25-26 March 2011
• EU European Commission Decisions concerning tax infringement procedures against four EU countries
• Germany European Commission requests Germany to amend discriminatory law on gift and inheritance tax allowance for non-residents

CCCTB

• EU European Commission proposes directive on the CCCTB

Stateaid

• GibraltarAG opinion in the case Commission and Spain v. Gibraltar and the United Kingdom

 Issue 2011: nr.002

ECJ cases

• Austria ECJ judgment on tax treatment of inbound portfolio dividends: joined cases Haribo et al v. Finanzamt Linz
• Austria AG opinion on tax treatment of donations to science and research institutions: Commission v. Austria case
• Germany AG opinion on imputation credit for inbound portfolio dividends: Meilicke II case
• Germany ECJ referral on inheritance tax on Third State participations
• Italy ECJ referral on administrative charge due to the registration of companies
• Luxembourg ECJ judgment on limiting the benefits of the investment tax credit to domestic investments: Tankreederei case
• Netherlands ECJ referral on private motor vehicle and motorcycle tax
• Slovenia ECJ referral on anti-abuse provision in case of demerger facility
• United Kingdom ECJ referral in compound interest case: Littlewoods Retail Ltd and others

National developments

• Denmark Highest adminstrative tax authority decision on “beneficial ownership” of interest
• Germany Lower court decision on exit taxation upon emigration of a SE to Austria
• Germany Lower court decision on gross taxation of cross-border royalties
• Germany Lower court decision on deduction of capital losses despite participation exemption regime
• Hungary Lower court decision on withholding tax on dividends distributed by Hungarian companies
• Ireland Lower court decision on cross-border surrender of operational losses
• Netherlands Final decision in the case of X Holding
• Netherlands Publication of Dutch tax treaty policy
• Netherlands Final decision in the case of Modehuis Zwijnenburg
• Netherlands Non-deductibility of group interest not in breach of Article 49 TFEU
• Netherlands Extended recovery period is not unlimited
• Norway EFTA Surveillance Authority opinion on Norwegian exit tax rules
• Switzerland Federal Council decision on identification rules for administrative assistance
• United Kingdom Thin Cap GLO: Claimants lose in Court of Appeal
• United Kingdom ACT Class 2/4 GLO claimants lose in the Court of Appeal

EU developments

• EU Main direct tax related Conclusions of the ECOFIN Council held on 15 February 2011
• EU European Commission announces public consultation on dividend withholding tax regimes and financial sector taxation
• EU European Commission publishes summary report on 2010 EC public consultation on double taxation problems in the EU
• EU European Commission announces Decisions concerning infringement procedures against five EU countries
• EU Second meeting of EU Tax Policy Group held on: VAT, Financial Sector Tax and Code of Conduct on Business Taxation
• Ireland European Commission requests Ireland to amend restrictive exit tax provisions for companies
• Italy European Commission requests Italy to modify its “golden shares” rules
• United Kingdom European Commission requests UK to amend two anti-abuse tax regimes
• United Kingdom Complaint made to the European Commission over UK's "Marks & Spencer" legislation in CTA 2010 ss111-128

CCCTB

• EU European Commission proposes directive on the CCCTB

State aid

• Germany European Commission decision on loss carry forward for ailing companies (“Sanierungsklausel”)
• Hungary Hungarian intra-group interest regime withdrawn
• Italy European Commission infringement regarding interest deductions by companies owned by public entities?
• Spain European Commission requires Spain to abolish Spanish tax amortisation of financial goodwill scheme favouring acquisitions in non-EU countries
• Spain European Commission Decision on Spanish tax amortisation of financial goodwill for foreign shareholding acquisitions for intra-EU acquisitions published

 Issue 2011: nr.001

ECJ CASES

• Austria AG opinion on tax treatment of inbound portfolio dividends: joined cases Haribo et alv. Finanzamt Linz
• GermanyAG opinion on the deductibility of a perpetual annuity: Schröder case
• Luxemburg ECJ judgment on limiting investment tax credit benefits to domestic investments: Tankreederei I SA case
• Denmark, Netherlands & Spain ECJ referralsregarding company exit tax rules
• Italy ECJ referral regarding the abuse of law principle and tax litigation amnesty procedure
• Netherlands ECJ referral regarding private motor vehicle and motorcycle tax
• United Kingdom ECJ referral by Supreme Court in the FII GLOcase

NATIONAL DEVELOPMENTS

• Austria High court questions legality of the tax exemption on income fromplant engineering and construction services
• Denmark Taxpayer prevails in a case onbeneficial ownershipof interest payments made to a Luxembourg parent company
• Denmark Tax Tribunal decision on Danish exit taxrules
• Germany Lower court decision on the conditions for obtaining a refund of withholding taxes for artists in Germany
• Germany Federal court decision on foreign income exemption with progression
• Germany Lower court decision ondenial of loss carry-forward in Austria and final losses
• Hungary Recent changes totaxlaw
• Luxembourg Administrative tribunal decision on fiscal unity regime
• Netherlands Standstill clause applicable to fictional income rule
• Netherlands Final lower court decision on private motor vehicle and motorcycle tax
• Norway State wins pilot cases onNorwegian taxation of dividends on outbound and inbound investments outside the ordinary 3 years deadline
• Poland End of discriminatory treatment of foreign investment and pension funds
• Portugal Changes to outbound dividend taxation regime
• Spain Non-resident income tax law amendedto bring Spanish law in line with EU Law
• Sweden Supreme Court decision on participation exemption on dividends and EU Parent-Subsidiary Directive
• Switzerland Introduction of the capital contribution principle
• United Kingdom HMRC granted leave to appeal in Marks & Spencer case
• United Kingdom ACT Class 2/4 GLO claimants lose again in the Court of Appeal
• United Kingdom Supreme Court refuses HMRC permission to appeal in Compound Interest Project

EU DEVELOPMENTS

• EU Report by PwC, World Bank, and IFC: "Paying Taxes is Getting Easier Despite Economic Downturn”
• EU Main direct tax related Conclusions of the ECOFIN Council held on 7 December 2010
• EU European Commission Communication on removing cross-border tax obstacles for EU citizens

CCCTB

• EULatest developments on the CCCTB

STATE AID

• Italy Infringement proceeding against Italy regarding interest deduction made by companies owned by public entities
• Netherlands AG opinion on Dutch emissions tradingscheme and State aid

 Issue 2010: nr.006

ECJ cases

• Belgium ECJ referral on burden of proof for deductible payments for the supply of services to non-resident recipients: SIAT SA v. Belgian State case
• France ECJ judgement onfree movement of capital: Société Etablissement Rimbaud case
• Spain ECJ ruling ontransfer tax on transfer of securities: Inmogolf case

National developments

• Austria Payroll tax exemption for employees active in plant engineering and construction services breaches Austrian Constitution
• Belgium Administrative circular on municipal charge levied on foreign source movable income payments toBelgian resident individuals without the intervention of a Belgian financial intermediary
• Belgium Brussels court of first instance judgement on Belgian Dividends Received Deduction regime regarding financial fixed assets
• BelgiumSupreme Court rejectscapitalisation of interest in tax matters
• France French tribunal allows for exceptional procedure for dealing with pending EU pension fund and investment fund claims
• Italy New guidelines for the application of Italian CFC rules
• Netherlands Final decision on Dutch elective taxpayer status regime: Gielen case
• Netherlands Premium paid to German insurer deductible
• Poland Proposed legislation to be introduced to end discrimination against foreign investment and pension funds
• Portugal Case pending before the Supreme Administrative Court regarding Portuguese tax regime on outbound dividends
• Portugal Expected amendment tothe tax regime onoutbound and inbound dividends
• Spain Spanish Supreme Court rulesonaction for damages against the State:taxpayers can claim action for damages plus interest in cases of violation of EU Law
• United Kingdom Stamp Duty Reserve Tax: High Court grants the GLO

EU Developments

• EU European Commission proposes new EU strategy for re-launch of the Single Market and adopts its Work Programme for 2011
• EU European Commission reactivateshigh-level EU Tax Policy Group
• Belgium European Commission formally asks Belgium to end the discriminatory treatment of non-residents working in the Flemish Region
• Czech Rep.&Sweden European Commission requests Czech Republic and Sweden to end discriminatory treatment of pensions
• Germany European Commission takes second step re fiscal unity
• Greece European Commission requests Greece to remove discriminatory provisions
• Netherlands European Commission requests the Netherlands to change its law on discriminatory taxation of substantial interests held by foreign companies
• Switzerland "Cash instead of Data" -details of final withholding tax by Swiss banks for German & UK clients are being negotiated by government working groups
• United Kingdom European Commission requests the UK to amend its rulesregarding Common Law claims

CCCTB

• EU Latest developments on the CCCTB

State Aid

• Italy European Commission: in-depth investigation on Italian municipal tax exemption
• Italy European Commission pressure on Italy regarding the recovery of the Italian State aid granted to utilities with a majority public capital holding

 Issue 2010: nr.005

ECJ cases

• Belgium: ECJ judgment on supplementary municipal tax on foreign sourced movable income: Dijkman case
• Italy: ECJ referral regarding new “litigation amnesty” procedure
• Luxembourg: ECJ referral regarding investment tax credits given only for domestic investments: Tankreederei SA v. Directeur de l'Administration des Contributions Directescase
• Portugal: ECJ referral regarding Portuguese taxation ondividends paid to non-resident holding companies: case C-199/10)
• United Kingdom: ECJ referral regarding consortium group relief: Philips Electronics ltd case

National developments

• Germany: Federal Fiscal Courtjudgment on final foreign PE losses
• Germany: Federal Fiscal Courtdecision on liability notice for omitted withholding taxes
• Germany: Case pending before the Federal Fiscal Court regarding a tax credit refund when foreign withholding tax exceeds German income tax
• Germany: Case pending before the Federal Finance Court regarding partial-income-rule for foreign participations in 2001
• Germany: Case pending before the Federal Fiscal Court regarding fiscal unity for trade tax purposes
• Italy: Removal of Cyprus and Malta from Italian Black Lists
• Italy: New tax reliefs introduced to boost economic competitiveness

EU Developments

• EU: European Commission launches public consultation on a recast of theInterest and Royalties Directive
• Spain: Real estate transfer tax on shares possibly contrary to the EU Capital Duty Directive

CCCTB

• EU: European Commission organises all-day workshop on CCCTB

 Issue 2010: nr.004

ECJ cases

• Austria ECJ referral fordiscriminatory tax provisions related to the appointment of fiscal representatives
• Belgium ECJ referral for discriminatorytaxation of interest paid by foreign banks to individuals
• Finland ECJ referral for failure to amend discrimination against foreign pension funds
• Germany ECJ referral for discriminatory taxation of foreign pension funds
• Italy ECJ judgment on tax provisions on the deductibility of tuition fees paid by individuals
• Netherlands ECJ judgment on the application ofthe anti-abuse provision in the Merger Directive: Zwijnenburg case
• Portugal AG opinion on the special regime for the tax adjustment of financial assets outside Portugal: Commission v Portugal
• Portugal ECJ judgment on taxation ofinterest payments to non-resident financial institutions: Commission v. Portugal
• Portugal ECJ referral for discriminatory taxation of outbound dividends: Commission v. Portugal
• Spain ECJ judgment on different taxation of dividends distributed by Spanish companies to resident and non-resident parent companies

National developments

• Finland Finnish tax administration issues:guidelines post Supreme Administrative Court’s decision in the Aberdeen case
• Finland Central Tax Board advance ruling on withholding tax on dividends from a Finnish listed company to a Luxembourg insurance company (S.A.)
• Germany Oral hearing at Federal Fiscal Court re final foreign PE losses
• Germany Follow-up decision in the case Glaxo Wellcome
• Germany Case pending with Federal Fiscal Court on fiscal unity without conclusion of a loss absorption agreement
• Germany Lower Fiscal Courtjudgement on cross border utilization of losses from rental income
• Norway Ministry of Finance submits written response to EFTA Surveillance Authority on Norwegian exit-tax rules
• Italy Constitutional Courtdeclares Sardinia’s tax on stopovers of private jets and boats is unconstitutional
• Romania New rules for relief of fiscal losses of foreign PEs and taxation of savings income in the form of interest payments
• United Kingdom Double taxation treaty relief: judicial review challenge

EU Developments

• EU European Commission Communication on re-launch of Single Market postponed until after Summer
• EU European Commission publishes annual report on taxation trends in the EU / EEA
• Belgium European Commission requests Belgium to modify its discriminatory tax treatment of foreign investment companies
• Spain European Commission requests Spain to amend its inheritance and gift tax regime

State Aid

• Finland European Commission declare Finnish tax exemptions for REITs (Real Estate Investment Trusts) not to be state aid
• Italy European Court of First Instanceconfirms Italian tax scheme on the recognition of hidden capital gains of privatised banks constitutes state aid

 Issue 2010: nr.003

ECJ cases

• Belgium ECJ referral on Belgian taxation of interest paid by foreign banks to individuals
• Germany ECJ decision on German gift tax allowance for non-residents: Mattner case
• Netherlands ECJ judgment on Dutch elective taxpayer status regime: Gielen case
• Portugal AG opinion on Portuguese taxation of interest earned by non-resident financial institutions

National developments

• Austria Consequences for Austrian law of ECJ’s decisions on Société de Gestion Industrielle SA and X Holding
• Estonia Supreme Court confirms incompatibility with EU Treaty of withholding tax on outbound dividend payments
• Finland Finnish Supreme Administrative Court on the ECJ’s decision in the Aberdeen case
• Germany Federal Supreme Court upholds Lower Finance Court's dismissal of offset of foreign losses on formal grounds
• Germany Case pending with Federal Finance Court (BFH) on taxation of family foundations abroad
• Germany Lower Court speaks out on competence for claims for refund of withholding tax
• Germany Federal Finance Court decision on former loss-recapture-method
• Germany Case pending with Federal Finance Court regarding write downs/capital losses of participations of loss making subsidiaries abroad
• Netherlands Government refusal to refund dividend withholding tax is contrary to EU law, compensation due
• Italy Update on the refund of withholding taxes on outbound dividends
• Spain Amendments to the Spanish Non-Resident Income Tax Act
• Spain Spanish Court of Appeal orders refund of unduly withheld dividend tax to 3 Dutch pension funds
• United Kingdom Compound interest claims – UK Court of Appeal decision in VIC GLO
• United Kingdom Investment trusts can now invest more than 15% of assets into certain foreign funds

EU Developments

• EU Proposal for EU Directive on CCCTB may be tabled in early 2011
• EU Former EU Tax Commissioner Monti presents recommendations on possible EU-wide tax reforms to re-launch Single Market
• EU New consolidated versions of TEU and TFEU available
• EU European Commission requests Belgium, Denmark and the Netherlands to change exit tax provisions for companies and closes a case against Sweden
• EU European Commission opens public consultation on double taxation problems in the EU
• Belgium European Commission formally requests Belgium to amend discriminatory exit tax provisions in case of a transfer of fiscal residence of a company to another Member State
• Belgium European Commission formally requests Belgium to amend its tax provision which requires the appointment of a fiscal representative for foreign operators of securities lending systems
• France European Commission challenges the French discriminatory taxation regime of foreign pension and investment funds
• Germany European Commission formally requests Germany to amend its anti-abuse provision concerning the relief of withholding taxes
• Norway EFTA Surveillance Authority issues formal notice to Norway regarding Norwegian exit tax rules

State Aid

• Cyprus Parliament enacts The Merchant Shipping (Fees and Taxing Provisions) Law of 2010

 Issue 2010: nr.002

ECJ cases

• Belgium ECJ judgment on Belgian provision on abnormal and gratuitous benefits: Société de Gestion Industrielle case
• Netherlands ECJ judgment on Dutch fiscal unity regime: X-Holding case
• Portugal Update on ECJ referral on Portuguese taxation of dividends paid to foreign pension funds
• Spain ECJ judgment on action for damages against the State
  

National developments

• Austria Carry forward of foreign withholding tax after the ECJ´s Damseaux decision and the pending Österreichische Salinen AG case
• Belgium New rules for payments made to tax havens
• Belgium Royal Decree on the renunciation of collection of withholding tax on investment income in response to European Commission request
• Germany Federal Tax Court decision in last instance on the Columbus Container case
• Germany Local Tax Court decision on in-phase utilisation of foreign losses
• Germany Lower Finance Court decision on the deductibility of final losses of a foreign subsidiary
• Germany Pending case with the Federal Finance Court concerning the application of the free movement of capital for a qualifying Third Country participation
• Germany Case pending with the Federal Tax Court on "commercially maintained business establishment" in CFC legislation
• Ireland Finance Bill 2010
• Norway PwC successfully assists a Luxembourg SICAV in getting a refund of withholding tax levied in breach of the EEA Agreement after the ECJ’s Aberdeen judgment
• Poland Polish tax authorities order the refund of unduly withheld dividend withholding tax levied on a Dutch pension fund
• Portugal Proposed State Budget for 2010 PwC EU Tax News 1
• PwC EU Tax News 2
• United Kingdom UK Court of Appeal decision on FII GLO
• United Kingdom ACT Class 2 and 4 GLOs – UK High Court decision
• United Kingdom HMRC invites claims re 1.5% Stamp Duty Reserve Tax
• United Kingdom Pre-2004 transfer pricing rules
• United Kingdom Last chance to make common law EU Treaty claims for repayment of direct tax

EU Developments

• EU EC direct tax policy-making in 2010
• EU New EU Tax Commissioner unveils EC work programme
• Belgium European Commission issues two reasoned opinions to Belgium concerning investment funds, including real estate SICAFs
• Greece European Commission acts against Greece over taxation of income from inbound dividends
• Spain European Commission formally requests Spain to amend certain rules related to the appointment of fiscal representatives
• Spain European Commission formally requests Spain to abolish its transfer tax on certain contributions of capital

State Aid

• Germany European Commission opens in-depth investigation (State aid) on loss carry forward for ailing companies
• Italy Italy appeals to the ECJ against CFI’s judgment on Italian measure favouring newly listed companies

 Issue 2010: nr.001

ECJ cases

• Austria Amended ECJ referral on Austrian taxation of portfolio dividends: Haribo Österreichische Salinen cases
• Germany New ECJ referral on special personal deductions of non-residents
• Italy ECJ judgment on Italian withholding tax on outbound dividends: Commission v. Italy case
• Netherlands AG opinion on Dutch fiscal unity regime: X-Holding case
  

National developments

• Belgium Discrimination against foreign investment funds: parliamentary question further to the Aberdeen case
• Belgium Parliamentary question on Belgian participation exemption regime: holding of shares in usufruct
• Belgium Parliamentary question on supplementary municipal charge levied only on foreign sourced movable income payments without the intervention of a Belgian financial intermediary
• Estonia Court of Appeal decision on Estonian withholding tax on outbound dividend payments
• Finland Amended legislation on the taxation of non-resident artists and sportsmen
• Germany Supreme Fiscal Court extends its earlier ruling on punitive lump-sum taxation of investors in so called 'black investment funds' to third-country funds
• Germany Lower Finance Court decision on final French PE losses
• Germany Ministerial decree on the Deutsche Shell case
• Germany Pending Federal Finance Court decision on recapture of PE losses
• Hungary Main tax legislative amendments from 1 January 2010
• Italy Repeal of the new tax regime on proceeds paid out by EU/EEA non-UCITS funds.
• Netherlands Dutch State Secretary for Finance opts for limitation of interest deduction for takeover companies and exclusion of PE losses
• Portugal Tax Regime for non-habitual Residents
• Switzerland Swiss Government adopts and publishes dispatches on revised double tax conventions with Denmark, France, Mexico, the UK and the US
• United Kingdom Thin Cap GLO: UK High Court decision
• United Kingdom Vodafone 2 CFC case: Court of Appeal decision now final
  

EU Developments

• EU European Tax Commissioner-designate wants CCCTB back
• Belgium European Commission formally requests Belgium to amend legislation implementing the Parent-Subsidiary Directive
• Germany European Commission formally requests Germany to amend its legislation on outbound dividends and interest payments to foreign pension institutions
• Lithuania European Commission sends a second Reasoned Opinion to Lithuania concerning its discriminatory taxation of outbound interest and royalties

 Issue 2009: nr.006

ECJ cases

• Austria ECJ referral on Austrian tax treatment of donations to science and research institutions: Commission v. Austria case
• Belgium AG opinion on Belgian provision concerning abnormal and gratuitous benefits: Société de Gestion Industrielle case
• Estonia ECJ referral on Estonian taxation of non-residents’ pensions: Commission v. Estonia case
• Germany ECJ judgment on German provision to prevent tax abuse of imputation credits and wholly artificial arrangements: Glaxo Wellcome case
• Germany ECJ judgment on German tax treatment of immovable property situated in another Member State: Busley and Cibrian case
• Germany ECJ judgment on the applicability of the Parent-Subsidiary Directive to a French "société par actions simplifié": Gaz de France case
• Germany ECJ judgment on German measures designed to encourage the participation in private pension plans to relieve the national social security system: Riester Rente case
• Germany ECJ referral regarding German provision on add back of interest payments
• Netherlands AG opinion on the Dutch elective taxpayer status regime
• Portugal ECJ referral on Portuguese exit tax provisions for companies: Commission v. Portugal case
• Spain ECJ referral on Spanish exit tax provisions for companies: Commission v. Spain case
• Spain ECJ judgment on Spanish tax treatment of capital gains on immovable property held by non-residents: Commission v. Spain case
• United Kingdom ECJ judgment on Stamp Duty Reserve Tax charge on issue of shares into clearance service: HSBC Holdings and Vidacos Nominees case
• United Kingdom ECJ referral on improper implementation of the Marks & Spencer decision regarding cross-border loss relief: Commission v. UK case
  PwC EU Tax News 1

National developments

• Denmark Danish National Tax Assessment Council considers Danish exit tax rules for companies in line with EC Law
• Estonia Estonian Ministry of Finance proposes to amend legislation to end discrimination against foreign charities
• Estonia Estonian Ministry of Finance proposes to introduce new interpretation of exit tax provisions on PEs
• France Update on EU pension fund claims in respect of French withholding tax
• Germany Lower Finance Court dismisses offset of foreign losses generated during individual's tax residency abroad
• Italy New Italian tax regime on proceeds paid out by EU/EEA non-UCITS funds
• Latvia Amendments to Latvian corporate tax deductions on interest payments
• Norway Norwegian Government amends the application of the tax exemption method in EU/EEA situations, ready to grant dividend withholding tax refunds
• Poland Polish Government to end discriminatory legislation on dividend and interest payments of foreign EU / EEA pension and investment funds before end of 2009
• Spain Spanish Government to align legislation regarding EU pension funds and calculation of taxable base of non-residents without a PE with EC law by 1 January 2010
• Sweden Swedish Gouvernment proposes to introduce limited “group deduction” for foreign tax losses
• United Kingdom Consortium loss relief rules found contrary to EC Law
• United Kingdom Marks & Spencer cross-border loss relief - Quantum of losses

EU Developments

• EU Lisbon Treaty enters into force on 1 December 2009
• EU Lame duck European Commission, new EU Treaty
• EU European Commission recommends simplified procedures for claiming back cross-border withholding tax relief
• Belgium European Commission requests Belgium to end its discriminatory taxation of dividends from bearer shares, dematerialised shares and foreign investment companies
• Estonia European Commission starts infringement procedure against Estonia over real estate income received by non-resident contractual funds PwC EU Tax News 2
• Germany European Commission formally requests Germany to end its discrimination on outbound dividends and interest payments to foreign pension institutions
• Portugal European Commission requests Portugal to amend its restrictive exit tax provisions for individuals
  

State Aid

• Germany European Commission decision on German tax law on risk capital
• Hungary European Commission decision on Hungarian intra-group interest taxation
• Italy CFI judgment on Italian measure favouring newly listed companies
• Portugal CFI judgment on tax incentives in the Autonomous Region of Azores
• Spain European Commission decision on Spanish goodwill amortisation scheme
• Spain CFI judgments on tax incentives approved by the Álava, Guipúzcoa and Vizcaya´s Basque Regional Councils

 Issue 2009: nr.005

ECJ cases

• Belgium ECJ judgment on Belgian withholding tax on foreign dividends: Damseaux case
• Belgium ECJ referral on supplementary municipal charge levied only on foreign sourced movable income payments without the intervention of a Belgian financial intermediary: Dijkman v. Belgium case
• France ECJ referral on the interpretation of the avoir fiscal and précompte mechanisms: Accor case
• Germany AG opinion on German provision to prevent tax abuse of imputation credits and wholly artificial arrangements: Glaxo Wellcome case
• Italy AG opinion on Italian withholding tax on outbound dividends: Commission v. Italy case
• Italy AG opinion on Sardinia’s tax on private jets and boats: Presidente del Consiglio dei Ministri v. Regione autonoma della Sardegna case
• Spain ECJ judgment on Spanish capital tax rules: Commission v. Spain case

National developments

• Austria Austrian Government amends legislation to end discrimination of foreign EU pension funds
• Czech Republic Recent experience with the Czech Ministry of Finance in respect of the acceptance of ECJ cases in the area of direct taxes
• Finland Ministry of Finance issues regulation introducing a binding “black list” for Finnish CFC purposes
• Germany Questionable Federal Finance Court decision on withholding tax levied on dividend payments to Swiss resident shareholders
• Germany Federal Fiscal Court decision on the deductibility of retirement contributions
• Germany Federal Fiscal Court decision on the taxation of PE profits under former imputation system
• Portugal Changes in Portuguese legislation concerning the taxation of lottery winnings
• United Kingdom Marks & Spencer plc cross-border loss relief case - Further hearing on quantum of losses

 Issue 2009: nr.004

ECJ cases

• Belgium ECJ Order on Belgian dividend received deduction regime related to internal situations and third countries: KBC and Beleggen, Risicokapitaal, Beheer joined cases
• Finland ECJ judgment on Finnish withholding tax on dividends to a Luxemburg SICAV: Aberdeen case
• Germany AG opinion on the applicability of the Parent-Subsidiary-Directive to dividend payments to a French société par actions simplifié: Gaz de France case
• Germany Second referral on the Meilicke case
• Greece ECJ judgment on Greek rules on taxation of inbound dividends and foreign partnerships: Commission v. Greece case
• Netherlands ECJ judgment on Dutch dividend withholding tax on EEA distributions: Commission v. The Netherlands case
• Netherlands ECJ judgment on the extended recovery period for additional assessments on assets held in other EU Member States: X and Passenheim-van Schoot joined cases
• Netherlands Oral hearing at the ECJ in the X – Holding case

National developments

• Finland Central Tax Board considers tax neutral demergers not possible if the shares received for consideration do not carry entitlement to the assets of the recipient company
• Finland Supreme Administrative Court rules that exchange of shares in one sub-fund for the shares of another sub-fund administered by the same Luxembourg SICAV is a taxable transaction
• Germany Lower Fiscal Court judgment on inclusion of loss carry-forward for purposes of exit taxation
• Germany Lower Fiscal Court judgment on subsidies for owner-occupied dwellings
• Italy Tax Authorities’ interpretation of the Italian tax treatment of certain EU/EEA outbound dividends
• Italy Amended tax regime for dividends paid out to EU/EEA pension funds
• Netherlands Dutch Supreme Court follows ECJ judgment in the Renneberg case
• Netherlands Dutch Supreme Court follows ECJ judgment in the Arens-Sikken case
• Portugal Changes to Portuguese legislation on the taxation of lottery winnings
• Switzerland Revision of double tax treaties with regard to information exchange
• United Kingdom Marks-&-Spencer plc win cross-border group relief case on return to the UK Special Commissioners of income tax
• United Kingdom UK Court of Appeal allows HMRC’s appeal in the Vodafone 2 case for the ECJ’s

EU Developments

• Denmark and Finland European Commission requests Denmark and Finland to end discriminatory treatment of foreign pension funds
• EU New EU report on taxation trends in the European Union
• Germany European Commission closes infringement procedure regarding withholding taxes on non resident artists, sportsmen and journalists
• Germany European Commission starts infringement procedure regarding the entitlement to domestic fiscal unity
• Poland European Commission formally requests Poland to end discriminatory taxation of pension funds, investment funds and financial institutions
• Spain European Commission formally requests Spain to change its tax provisions concerning the taxation of capital gains arising from an exchange of shares

State Aid

• Italy European Court of First Instance considers Italian 3-year income tax exemption granted to certain Italian public utilities constitutes State aid
• Netherlands European Commission rules that proposed Dutch ‘groepsrentebox’ is not prohibited State aid

CCCTB

• EU Outlook for CCCTB and second Irish referendum on the Lisbon Treaty

 Issue 2009: nr.003

ECJ cases

• Germany ECJ referral on Germany’s discriminatory depreciation rules for buildings abroad: Commission v Germany case
• Germany ECJ referral on German withholding taxes on outbound dividends: Commission v Germany case
• Germany AG opinion on German private pension rules: Riester Rente case
• Greece ECJ judgment on Greek rules on taxation of inbound dividends and foreign partnerships: Commission v Greece
• Italy ECJ referral on Italian tax rules on tuition fees paid by individuals: Emiliano Zanotti v Agenzia delle Entrate case
• Poland ECJ judgment on non-deduction of health premiums: Uwe Rüffler case
• Portugal ECJ referral on Portugal’s discriminatory taxation of lottery winnings
• Spain ECJ referral on restrictive Spanish exit tax provisions for individuals
• Spain AG opinion on Spanish capital duty rules: Commission v. Spain
• United Kingdom AG opinion on lawfulness of UK stamp tax regime for entry into clearance service: HSBC Holdings Plc and Vidacos Nominees Ltd v HM Revenue and Customs case

National developments

• Belgium Court of Appeal of Brussels judgment on abnormal and gratuitous benefits
• Finland Central Tax Board judgment on transfer of carry-forward tax losses in connection with a cross-border merger
• Germany Case pending with the Federal Tax Court regarding exit tax upon relocation of German inventor to Belgium
• Germany Federal Fiscal Court judgment on taxation of construction services
• Germany Taxation of investment funds and application of Art 57 Para. 1 EC
• Germany Case pending with the Federal Finance Court regarding withholding taxes for non-resident artists
• Italy Regional Tax Court rules that Italian CFC rules are not in breach of EC Law
• Portugal Supplementary State Budget for 2009
• Spain Spanish High Court judgment on discriminatory taxation on capital gains from real estate
• Spain Spanish Government announcement to amend Spanish rules on outbound dividends and interest paid to non-resident pension funds and rules for determining the taxable base
• Sweden Supreme Supreme Administrative judgment on Swedish group relief system
• Sweden Swedish Supreme Tax Court judgment on deductibility of foreign exchange losses on debts in foreign currencies

EU developments

• EU European Commission proposes actions to improve transparency, exchange of information and fair tax competition
• EU European Commission publishes survey on the implementation of the EU Interest and Royalties Directive
• EU European Commission adopts two proposals for new Directives aimed at improving mutual assistance between Member States' tax authorities in the assessment and the recovery of taxes
• Austria European Commission formally requests Austria to end the discriminatory tax treatment of donations regarding science, research and adult education

State aid

• Italy European Court of First Instance: Italian regime for investment vehicles specialised in small- and mid-caps constitutes State aid

CCCTB

• EU Outlook for the CCCTB

 Issue 2009: nr.002

ECJ cases

• Austria ECJ referral on Austrian taxation of portfolio dividends: Haribo case
• Belgium ECJ judgment on Belgian participation exemption regime: Cobelfret case
• Germany ECJ judgment on German tax treatment of donations to foreign charities: Persche case
• Germany ECJ judgment on German double (inheritance) taxation: Block case
• Germany ECJ judgment on German tax treatment of write-downs on foreign shareholdings in 2001: Steko case
• Portugal ECJ referral on Portuguese taxation of non-resident taxpayers

National developments

• Belgium New Regulation for non-resident sportsmen and artists adopted
• Belgium New Regulation providing for a tax relief for foreign nursery costs adopted
• Belgium New regulation providing for tax deductibility of donations to foreign charities
• Finland Amendments to legislation on withholding tax on Finnish source dividends since 1 January 2009
• France Supreme Court decision on the compatibility of withholding tax due by EU pension funds on French dividends
• Germany Supreme Fiscal Court decision on lump-sum taxation of so called 'black investment funds'
• Germany Federal Finance Court decision on exit taxation in case of cross-border movements of individuals with shareholdings
• Germany Provision regarding charitable activities when conducted abroad amended
• Italy Proposed amendment in respect of withholding tax on outbound dividends paid out to EU/EEA foreign pension funds
• Netherlands Dutch Tax Authorities reimburse Dutch dividend withholding tax to EU based pension funds
  
• Netherlands Dutch Supreme Court judgment in the case of Orange European Smallcap Fund NV: a participation in an investment fund cannot be qualified as a ‘direct investment’
• Portugal Draft proposal for the supplementary State budget for 2009
• Spain Amendments expected before end of 2009 regarding the taxation of Spanish dividends paid to EU based pension funds
• Switzerland Developments in Switzerland

EU developments

• Belgium European Commission requests Belgium to extend the Belgian Notional Interest Deduction regime
• Czech Republic European Commission requests the Czech Republic to end discriminatory taxation of non-resident taxpayers
• EU European Commission publishes survey on the implementation of the Tax Merger Directive EU-wide
• Finland European Commission requests Finland to end discriminatory taxation of non-resident artists and sportsmen
• Greece European Commission opens new infringement procedure against Greece for its failure to comply with an ECJ judgment concerning capital duty

State aid

• Germany European Commission starts in-depth investigation into proposed German capital investment law (Bill to Modernise the General Conditions for Capital Investments - MoRaKG)
• Italy Tax Authorities issue new tax codes for the recovery of State aid granted to utilities with a majority public capital holding, Constitutional Court confirms the recovery is justified

 Issue 2009: nr.001

ECJ cases

• Austria ECJ judgment on Austrian rules on investment growth premium: Jobra case
• Belgium ECJ judgment on Belgian taxation of interest payments: Truck Center case
• Belgium ECJ judgment on application of Parent-Subsidiary Directive to shares in usufruct: Les Vergers du Vieux Tauves case
• Finland AG opinion on Finnish withholding tax on dividends paid to a Luxembourg SICAV: Aberdeen case
• France ECJ judgment on French tax group regime: Papillon case
• Germany ECJ judgment on the valuation of shares in the case of a share exchange: A.T. case
• Germany ECJ referral on German tax allowance for donations between non-residents of immovable property situated in Germany
• Hungary ECJ judgment on whether a company registered in an EU Member State can transfer its operational headquarters to another Member State without restrictions: Cartesio case
• Italy AG opinion on Italian golden shares rules: Commission vs. Italy case
• Portugal ECJ referral on Portuguese taxation of dividends paid to foreign pension funds
• Spain ECJ referral on Spanish taxation of dividends paid to foreign pension funds

National developments

• Czech Republic Abolition of discriminatory taxation of foreign pension funds
• Germany Federal Finance Court confirms the application of the free movement of capital for majority shareholdings in Third State resident companies
• Hungary Amendments to tax and accounting laws effective from 1 January 2009
• Italy Extension of tax neutrality granted to domestic mergers to mergers between foreign companies not covered by the EU Merger Directive
• Netherlands Supreme Court orders disapplication of Dutch taxation rules on cars registered in another Member State as they infringe Art. 43 EC and 55 EC
• Portugal Changes following the adoption of the State Budget for 2009
• Portugal Amendments to discriminatory taxation of lottery winnings
• Spain Changes to corporate income tax and capital tax laws
• Sweden Amendment to company exit charge tax rules
• Switzerland Announcement of corporate tax reforms
• United Kingdom High Court judgment in FII GLO

EU developments

• EU Main results of the December 2008 European summit and direct tax policy outlook for 2009
• EU Main results of the 2 December 2008 ECOFIN Council
• EU European Commission launches new Savings Tax Directive proposal
• Estonia European Commission requests Estonia to end discrimination against foreign charities
• Portugal European Commission requests Portugal to change its restrictive exit tax provisions for companies
• Spain European Commission requests Spain to change its restrictive exit tax provisions for companies
• United Kingdom European Commission requests UK to allow deductibility of cross-border pension contributions

State aid

• France ECJ rules that France has failed to fulfil its obligations under EC Law to recover illegal State aid
• Gibraltar European Court of First Instance annuls European Commission Decision according to which the proposed reform of corporation tax in Gibraltar is unlawful State aid
• Italy New rules for recovery of State aid granted to Italian utilities with a majority public capital holding

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