EU tax news archive

• Issue 2008: nr.006
• Issue 2008: nr.005
• Issue 2008: nr.004
• Issue 2008: nr.003
• Issue 2008: nr.002
• Issue 2008: nr.001
• Issue 2007: nr.006
• Issue 2007: nr.005
• Issue 2007: nr.004
• Issue 2007: nr.003
• Issue 2007: nr.002
• Issue 2007: nr.001
• 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 2008: nr.006

ECJ cases

• Belgium ECJ judgment on Flemish inheritance tax: Eckelkamp case
• Belgium ECJ referral on Belgian anti-abuse provision concerning abnormal and gratuitous benefits: Société de Gestion Industrielle case
• Belgium ECJ referral on Belgian taxation of inbound dividends: Commission vs. Belgium case
• Belgium AG Opinion on Belgian withholding tax on interest payments to non-resident companies: Truck Center case
• France AG Opinion on the French tax group regime: Société Papillon case
• Germany AG Opinion on deduction of donations to foreign charities: Persche case
• Germany ECJ judgment on German rules on evaluation of participations in domestic and foreign partnerships: Heinrich Bauer Verlag Beteiligungs GmbH case
• Germany ECJ judgment on the deductibility of foreign PE losses: Krankenheim-Ruhesitz case
• Italy ECJ referrals on the Italian withholding tax rules on the dividend adjustment: Ferrero e C. Spa case and General Beverage Europe B.V. case
• Netherlands ECJ judgment on Dutch inheritance tax: Arens-Sikken case
• Netherlands ECJ judgment on Dutch refusal of taking into account negative rental income relating to immovable property located in another Member State: Renneberg case
• Spain ECJ judgment on Basque corporate tax measures: Unión General de Trabajadores de la Rioja (joined cases)

National developments

• Denmark Danish National Tax Tribunal: Different treatment of income under Danish thin capitalisation rules depending on the residence of the debtor
• Finland Amendments proposed to the legislation on withholding taxation of Finnish source dividends
• Finland Central Tax Board rules that tax neutral exchange of shares is possible between Finnish and Norwegian companies
• France Court of Appeal rules that French CFC legislation applicable to French resident individuals is not compatible with EC Law
• Germany Federal Tax Court on asset transfer to EU permanent establishments
• Germany Federal Tax Court decision following the ECJ judgment in Schwarz/Gootjes-Schwarz
• Greece Grreece amends taxation rules on inbound and outbound dividends
• Netherlands Supreme Court rules that free movement of capital from and towards third countries is not applicable in case of majority shareholdings
• Netherlands Supreme Court rules that ‘most favoured nation treatment’ is not required for tax sparing credits
• Netherlands Supreme Court rules that a currency loss on a loan connected to a minority participation in a third country company is deductible under Article 56 EC
• Netherlands Supreme Court announces preliminary question on the effect of optional residency status
• Portugal Changes to Portuguese legislation concerning its discriminatory taxation of lottery winnings
• Portugal Proposed State Budget for 2009
• UK Changes proposed to "late paid interest rule", currently in breach of EC Treaty

EU developments

• Estonia European Commission requests Estonia to amend discriminatory taxation of pensions paid to non-residents
• Ireland European Commission requests Ireland to amend its discriminatory tax provisions in relation to the taxation of Savings Certificates and certain Government, State-Issued and State-Guaranteed Securities
• Greece European Commission requests Greece to amend its discriminatory tax provisions applicable to the acquisition of a first residential real estate in Greece
• Portugal European Commission requests Portugal to end discriminatory taxation of foreign services providers
• Spain European Commission requests Spain to change discriminatory taxation of non-resident individuals and restrictive exit taxes
• Sweden European Commission requests Sweden to amend its restrictive company exit charge tax rules
• UK European Commission calls on UK to implement ECJ decision on cross-border loss relief

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

 Issue 2008: nr.005

ECJ cases

• Belgium AG opinion on ownership under the Parent-Subsidiary Directive: Les Vergers du Vieux Tauves Case
• Germany ECJ referral on withholding tax on outbound dividends: Gaz de France Case
• Netherlands ECJ referral on cross-border fiscal unity

National developments

• Austria Administrative High Court decision on taxation of inbound portfolio dividends
• Finland Amendment of the Finnish CFC legislation in order to meet the requirements of EC law
• Germany Recent legislative developments regarding the treatment of losses from EU/EEA countries
• Germany Case pending with the German Federal Constitutional Court regarding denial of interest on refund of withholding tax
• Hungary Film Incentive Scheme Amended
• Netherlands Dutch Supreme Court: Dutch withholding tax on dividends paid by a Dutch ‘dividend mixer company’ to a UK holding company restricts freedom of establishment
• Romania Romania amends fiscal code provisions affecting taxation of outbound dividends to companies resident in Liechtenstein, Iceland and Norway
• Spain Government submits bill to parliament to comply with ECJ judgment on R&DT innovation tax credit scheme
• UK High Court decision in Vodafone 2 v Commissioners of HMRC disapplying the UK CFC legislation

EU developments

• Germany European Commission formally requests Germany to apply the ECJ "Volkswagen" judgment ("golden shares")

CCCTB - Common consolidated corporate tax base

• EU European Commission’s proposal for CCCTB delayed

State aid

• Italy Enactment of law for the recovery of unlawful State aid granted to certain banks for the tax recognition of their hidden capital gains

 Issue 2008: nr.004

ECJ cases

• Belgium ECJ judgment on Belgian obligations regarding the implementation of the Merger Directive
• Belgium AG opinion on Belgian application of the Parent subsidiary Directive: Cobelfret case
• Estonia ECJ referral on Estonian withholding tax on outbound dividend payments
• Germany ECJ judgment on German corporate tax uplift under the former imputation system: Burda case
• Germany ECJ judgment on German tax treatment of foreign losses: Lidl Belgium case
• Hungary AG opinion on transfer of the real seat by a company registered in Hungary to another EU Member State: Cartesio case
• Netherlands ECJ judgment on Dutch credit of foreign dividend withholding tax: Orange European Smallcap Fund NV
• Spain ECJ referral on Spanish winnings tax rules
  

National developments

• Finland Central Tax Board judgment on Finnish withholding tax on cross-border portfolio dividends
• France Administrative Court of Appeal judgment on French withholding tax due by foreign pension funds on capital gains
• Germany Federal Tax Court judgment on the applicable tax rate on profits derived from a German PE
• Germany Lower Finance Court expresses serious doubts concerning exit taxation in the case of cross border movements of individuals with shareholdings
• Italy Italy implemented Merger Directive 2005/56/EC
• Netherlands AG opinion on discriminatory tax treatment of the acquisition of shares by third country residents PwC EU Tax News 1
• Norway EFTA Court judgment on Norwegian tax rules on maximum credit allowance: Seabrokers case

EU developments

• Denmark European Commission requests Denmark to change tax measures discriminating against income from foreign-based investment funds
• Czech Republic, Italy European Commission formally requests the Czech Republic and Italy to end discriminatory taxation of foreign pension funds
• Spain, Portugal European Commission takes steps against Spain and Portugal regarding their discriminatory taxation of dividends paid to foreign pension funds
• Portugal European Commission requests Portugal to end discriminatory rules against non-resident taxpayers
• Bulgaria, Romania European Commission requests Bulgaria and Romania to end their discriminatory taxation of dividends and closes case against Luxembourg
  

CCCTB - common consolidated corporate tax base

State aid

• Italy European Commission opens formal State aid investigation into 300m Euro granted by the Italian State to Alitalia
• Italy European Commission opens formal State aid investigation into the Italian tax relief measures in favour of the cooperatives operating in the banking, retail and distribution services sectors
• Italy ECJ referrals on the Italian tax relief measures granted to cooperatives
• Spain AG opinion on Basque tax measures and classification as State aid: UGT- Rioja case
  

 Issue 2008: nr.003

ECJ cases

• Belgium: ECJ referral on tax treatment of French-source dividends
• Belgium: ECJ referral on dividends-received deduction regime
• Belgium: AG opinion on compatibility with EC Law of Belgian rules on the nondeductibility of debts from inheritance tax base if testator was resident abroad: Hans Eckelkamp and Others v Belgian State case
• Germany: ECJ referral on anti-abuse rules under the former German imputation system: Glaxo Wellcome case
• Germany: ECJ referral concerning double taxation rules: Block case
• Germany: ECJ referral on limited deductibility of foreign rental losses and the nonapplication of declining depreciation for buildings located abroad: Busley/Cibrian case
• Netherlands: ECJ referral on extended statutory time limit for issuing an additional tax assessment for foreign income
• Poland: ECJ referral concerning non deduction of health premiums
• Portugal: ECJ referral on discriminatory taxation against foreign banks
• Spain: ECJ referral on (former) capital gains tax rules
• Spain: ECJ judgment on R&DT innovation tax credit scheme UK ECJ Order on CFC and dividend group litigation issues

National developments

• Finland: Supreme Administrative Court decision on withholding liability on Finnish source dividend paid to non-resident individual
• Finland: Supreme Administrative Court confirms earlier ECJ decision on the consistency of Finnish transfer tax with the Capital Duty Directive (C-240/06,Fortum Project Finance)
• Germany: Germany - Case pending with the Federal Tax Court regarding exit tax on goodwill
• Germany: Case pending with the Federal Tax Court regarding withholding tax on outbound dividends
• Germany: Case pending with the Federal Tax Court regarding capital gains taxation upon migration
• Germany: Case pending with the Federal Tax Court on imputed interest on an interest free loan
• Germany: Lower court judgment on rules on the adding back of interest payments to the tax base
• Italy: Tax Authorities’ Resolution on the application of Tax Treaties for pension funds and investment funds
• Netherlands: Supreme Court judgment on recognition of foreign charitable institutions
• Netherlands: Lower court circumvention of the question of whether the exit tax is compatible with the freedom of establishment
• Norway: New interpretative statements from the Directorates of Taxes regarding investment funds resident within the EEA and the tax exemption method
• Poland: Lower court judgment on taxation of interest earned by EU-based investment funds
• Sweden: Supreme Court judgment on exit charge

EU developments

• Estonia: Estonia amends discriminatory legislation regarding the taxation of dividends paid to foreign pension funds
• Hungary: European Commission requests Hungary to end discriminative tax incentives for research and development
• Portugal: European Commission requests Portugal to end discriminatory taxation against investments held outside Portugal
• EU Parliament: EU Parliament issues report on impact of ECJ cases in field of direct tax

CCCTB - common consolidated corporate tax base

Update on two new Commission Working Papers on anti-abuse and various detailed aspects of the CCCTB

State aid

• Italy: European Commission decides that the 2003 Italian tax scheme on the recognition of hidden capital gains of privatised banks constitutes State aid
• Italy: European Commission refers Italy to the ECJ for failure to recover a State aid in favour of companies participating in trade fairs abroad
• Switzerland and EU: Update on EU-Swiss dialogue on disputed Swiss company tax regimes

 Issue 2008: nr.002

ECJ cases

• Belgium: ECJ judgment on the recharacterisation of interests as dividends: Lammers & Van Cleeff case
• France: A-G opinion on the compatibility of the French tax code with the EU’s parent-subsidiary directive: Banque Fédérative du Crédit Mutuel case
• Germany: A-G opinion on whether a German tax uplift is allowed under the parent-subsidiary directive or an infringement of the EC Treaty: Burda case
• Germany: A-G opinion on compatibility with EC Law of German denial to offset foreign PE losses with domestic profits if foreign PE income is exempted by a double tax treaty: Lidl Belgium case
• Germany: ECJ judgment on non-deductibility of currency losses from foreign exempt PEs restricts the freedom of establishment: Deutsche Shell case
• Germany: ECJ judgment on compatibility with EC Law of German inheritance tax and valuation provisions relating to foreign and domestic agricultural land: Jaeger case
• Portugal: EC referral to the ECJ on discriminatory Portuguese tax amnesty legislation

National developments

• Belgium: Court of First Instance of Brussels confirms Belgian tax treatment of pension capital is discriminatory
• Belgium: Hearing in referral regarding the Belgian participation exemption
• Germany: Amendments to the taxation of foreign family foundations
• Hungary: Supreme Court confirms that EC law has direct effect and takes precedence over national law in the case of non-compliant locallegislation
• Netherlands: Supreme Court rules that the non-deductibility of costs relating to lower tier subsidiaries in third countries held through EU intermediate subsidiaries is compatible with the freedom of establishment PwC EU Tax News 2
• Netherlands: District Court rules that the refusal to extend Dutch fiscal unity to cross-border situations is not contrary to the freedom of establishment
• Netherlands: District Court of The Hague refunds withholding tax on payments to a foreign football organisation
• Portugal: Supreme Administrative Court follows the ECJ’s Hollman ruling
• Portugal: Tax reductions for the free zone of Madeira for the period 2007-2020
• Sweden: Swedish Advance Ruling Board rules that Swedish group relief system is not compatible with EC Law

EU developments

• Estonia and Germany: European Commission starts infringement proceedings regarding the taxation of dividends paid to foreign pension fund
• Germany: European Commission formally requests Germany to end its discriminatory rules applied to non-resident taxpayers - mainly artists, sportsmen and journalists
• Germany: European Commission formally requests Germany to end its discriminatory depreciation rules applied to buildings situated abroad
• Italy: European Commission refers Italy to ECJ over discriminatory taxation of outbound dividends
• Latvia: European Commission takes steps against Latvia regarding its discriminatory taxation of dividends paid to non-resident individuals
• Lithuania: European Commission takes steps against Lithuania regarding its discriminatory taxation of outbound interest
• Spain: European Commission sends Spain a formal request to amend its discriminatory anti-abuse rules in the Corporate Income Tax
• Switzerland: and EU Update on bilateral dialogue on disputed Swiss company tax regimes

CCCTB - common consolidated corporate tax base

Update on release of two new Commission Working Papers (WP 63 and 64) and other items

State aid

• Italy: European Commission authorises State aid for development of Italy’s southern regions
• Spain: European Commission authorises Spanish corporate tax deduction aimed at promoting R&D

 Issue 2008: nr.001

ECJ cases

• Austria: Preliminary ruling request regarding conditions for claiming Austrian investment growth premium
• Germany: ECJ judgement on transitional rules for capital gains tax on domestic and foreign participations: Gronfeldt and Gronfeldt case
• Germany: ECJ order regarding Third State branch losses: Stahlwerk Ergste Westig (SEW) case
• Germany: AG opinion in the Heinrich Bauer Verlag Beteiligungs GmbH case
• Germany: ECJ judgement on the compatibility with EC Law of switching from exemption method to credit method: Columbus Container Services case
• Germany: AG opinion on the non-deductibility of foreign currency losses: Deutsche Shell case
• Germany: ECJ judgement on tax allowance for teaching at a foreign university: Jundt case
• Italy: ECJ decision on Italian -golden share- rules: AEM S.p.A. case
• Netherlands: ECJ judgement on the incompatibility of the Dutch dividend withholding tax on outbound dividends with the free movement of capital: Amurta case
• Sweden: ECJ judgement clarifying further the concept of free movement of capital to and from third countries: A case

National developments

• Belgium: Belgian rules for compensation of losses with profits of non-EU permanent establishments considered as discriminatory by Brussels Court of first instance
• Estonia: Proposed amendments to bring the law in line with the Parent-Subsidiary Directive
• Estonia: Amendment to corporate income tax law concerning outbound dividends and royalties
• Finland: Supreme Administrative Court decisions: even in the case of ‘final losses’ no cross-border group contribution possible
• Germany: Federal Finance Court has no serious doubts concerning withholding taxes despite the ECJ’s decision in the Scorpio case
• Ireland: Irish extension of the remittance basis of taxation to UK source income
• Italy: Financial Bill for 2008 amends the Italian legislation on outbound dividends and CFC rules
• Netherlands: Supreme Court refunds Dutch dividend withholding tax to a Luxembourg parent company on the basis of Article 56 EC
• Portugal: Changes in legislation concerning capital gains exemption regarding the sale of owner-occupied dwellings
• Portugal: Tax reductions for the free zone of Madeira for the period 2007-2020
• Portugal: State Budget for 2008

EU developments

• EU: Update on the Common Consolidated Corporate Tax Base (CCCTB)
• EU: European Commission calls for more targeted and better coordinated application of Member States' anti-abuse rules
• Belgium: European Commission amends transitional regime for Belgian coordination centres
• France: European Commission starts formal State aid investigation into French plan to grant tax aid to insurers selling specific solidarity policies
• Spain: European Commission adopts formal decision to start EU State aid inquiry against Spain regarding financial goodwill amortisation and invites interested parties to submit comments
• Switzerland and EU: Update on bilateral dialogue on disputed Swiss company tax regimes

 Issue 2007: nr.006

ECJ cases

• Belgium: ECJ judgment on Flemish inheritance tax relief for participations in family companies: Geurts and Vogten case
• Belgium: ECJ referral on the Belgian dividends-received deduction regime
• Finland: ECJ judgment on Finnish transfer tax: Fortum Project Finance case
• France: ECJ judgement on the French 3% tax on real estate held by non-residents: Elisa case
• Germany: ECJ judgments on German tax deduction for fees to foreign schools: Schwarz / Gootjes-Schwarz case and Commission vs. Germany case
• Germany: A-G Opinion on German valuation and allowance rules for agricultural land and forestry for inheritance tax purposes: Theodor Jaeger v. Finanzamt Kusel-Landstuhl case
• Germany: A-G opinion on tax exemption for teaching at a foreign university: Jundt case
• Hungary: ECJ judgment on the Hungarian local business tax: Kögáz case
• Italy: ECJ judgment on taxation of EC contributions: Porto Antico di Genova case
• Netherlands: European Court of First Instance judgment on transitional period for Dutch regime on group financing activities: Friesland Foods case
• Portugal: ECJ judgment on Portuguese tax treatment of capital gains: Hollman case
• Sweden: A-G opinion on the Swedish rules on taxation of dividend distributed as shares in a subsidiary: A case
  

National developments

• Finland: Advance Ruling of the Central Tax Board concerning taxation of cross-border merger between companies resident in Finland and in an EEA State
• Finland: Government bill on amendments to corporate tax legislation to meet the requirements of Directive 2005/56/EC on cross-border mergers of limited liability companies
• Germany: Federal Finance Court rejects the appeal in the Scorpio case
• Italy: Amendment of the Italian tax legislation concerning outbound dividends
• Luxembourg: Draft bill amending the law implementing the Savings Directive
• Norway: Tax exemption method and refund of withholding tax imposed on dividends
• Portugal: Proposed State Budget for 2008
• UK: Implementation of Directive 2005/56/EC on cross-border mergers of limited liability companies
• UK:Vodafone appeals decision of Special Commissioners

EU developments

• EU: European Commission issues progress report on probable elements of the proposed Common Consolidated Corporate Tax Base
• Germany: European Commission opens infringement proceedings against Germany for its discriminatory rules applied to cross-border loss offset
• Greece: Draft law regarding the recovery of illegal tax exemptions (State aid) introduced before Greek Parliament
• Italy: European Commission authorises adoption by Italy of the “cuneo fiscale” regional tax reduction measure
• Spain: European Commission opens State Aid inquiry into Spanish financial goodwill amortisation

 Issue 2007: nr.005

ECJ cases

• Belgium: ECJ referral regarding withholding tax on interest paid by a Belgian company to a Luxembourg company: Belgian State v Truck Center SA case
• Belgium: ECJ judgment on the discriminatory tax treatment of foreign insurance undertakings contributions: Commission v Belgium case
• Denmark: ECJ judgment on tax evasion and the distribution of dividends shortly after a tax-exempt exchange of shares: Hans Markus Kofoed v Skatteministeriet case
• Finland: ECJ judgment on the compatibility of the Finnish group contribution regime with the EC Treaty: Oy AA case
• France: ECJ referral on the compatibility of the French group taxation regime with the EC Treaty: Société Papillon case
• Germany: ECJ referral on the non-deductibility of write-downs in foreign shareholding in 2001: Steko Industriemontage case
• Italy: ECJ judgment on the application of the principle of res judicata: Lucchini case
• Luxembourg : ECJ judgment on negative foreign rental income to be taken into account in the state of employment: Lakebrink case
• Netherlands: AG opinion on dividend withholding tax: Orange European Smallcap Fund NV case

National developments

• France: Additional administrative guidelines regarding the consequences of ECJ’s Denkavit decision on French dividend withholding tax
• Germany: Non-deductibility of loss attributable to foreign income pending with the German Supreme Tax Court (I R 16/07)
• Netherlands: AG advises to refer Dutch fiscal unity case to the ECJ
• Norway: Lower court judgment in the Fokus Bank
• Poland: Exemption from real estate tax for investors
• UK: Sempra Metals Limited v Inland Revenue Commissioners and another: House of Lords awards compound interest
• UK: Vodafone 2 v The Commissioners of Her Majesty's Revenue and Customs: Referral to ECJ to be withdrawn

EU developments

• Finland, Italy: European Commission opens infringement proceedings against Finland and Italy over discriminatory taxation of dividend and interest payments to foreign EU pension funds
• Germany: European Commission requests Germany to change discriminatory rules concerning foreign family foundations
• Germany: European Commission refers Germany to ECJ over pension allowance
• Germany: European Commission investigates German dividend taxation
• Greece : European Commission refers Greece to the ECJ due to the discriminatory taxation of non-Greek partnerships
• Greece: European Commission refers Greece to the ECJ due to discriminatory taxation of dividends from foreign companies
• Greece: European Commission requires Greece to recover illegal tax exemptions (State aid)
• Poland: Polish Government announces amendments to discriminatory rules regarding the taxation of dividend and interest payments to foreign EU pension funds
• Sweden: European Commission opens new infringement procedure against Sweden over rules on capital gains tax relief on dwelling sales
• Sweden: European Commission to Sweden regarding the rules on tax deductions for non-residents
• UK: European Commission sends formal notice to UK regarding cross-border loss relief

 Issue 2007: nr.004

ECJ Cases

• Austria: ECJ judgment on Austrian taxation of dividends from third countries: Holböck case
• Finland: ECJ referral on Finnish withholding taxation on dividends paid by a Finnish company to a Luxembourg SICAV
• Germany: A-G Opinion on German State granted subsidy for self-occupied houses in Germany: Commission v Germany case
• Germany: ECJ order on the applicability of Article 56 EC to German thin cap rules: Lasertec case
• Germany: ECJ referral on German requirement of book value attribution in cross-border exchange of shares: Ernst & Young case
• Germany: Referral to the ECJ on non-deductibility of donations in kind to foreign charities: Persche case
• Italy: A-G Opinion on Italian taxation of EC contributions: Porto Antico di Genova case
• Netherlands: A-G Opinion on Dutch withholding tax treatment of outbound dividends: Amurta SGPS case
• Sweden: ECJ order on compatibility with EC Law of Swedish legislation on dividend tax relief in relations with third countries: Skatteverket v. A and B case

National developments

• Estonia: Administrative Court judgment on dividend payments to EU investment funds
• France: New guidelines for French dividend withholding tax after the ECJ judgment in the Denkavit case
• Germany: Ministry of Finance decree on German withholding tax for certain income of non-resident taxpayers after the ECJ judgment in the Scorpio case
• Germany: Ministry of Finance decree on write-downs of foreign participations after the judgment in the Rewe-Zentralfinanz case
• Italy: Repeal of the 1998 Italian provisions concerning the 1985-1992 administrative charge due to the registration of corporate documents
• Italy: Italian Tax Authorities’ Resolution on the application of Article 15 of the 2004 Agreement between the EU and Switzerland
• Netherlands: A-G Opinions on tax sparing credits and most favoured nation treatment
• Netherlands: A-G Opinion: method of ordinary credit not contrary to EC Law
• UK: Marks & Spencer plc v Halsey: House of Lords refuse HMRC leave to appeal
• UK: Boake Allen Limited and others v HMRC: House of Lords judgment in ACT Class 3 group litigation
• UK: Taxation of foreign profits: Consultation
• UK: Overseas leasing

EU developments

• Hungary: Update on European Commission’s infringement proceeding against Hungary regarding its intra-group interest taxation scheme
• Italy: European Commission investigates Italian tax incentive regarding the recognition of hidden capital gains of privatised banks
• Portugal: European Commission endorses tax reductions for the free zone of Madeira for the period 2007-2013
• Portugal: European Commission deems Portuguese tax amnesty contrary to EC Law
• Spain: European Commission closes infringement proceeding against Spain over Registrar Fees
• Switzerland: EU Council of Ministers authorises European Commission to negotiate on Swiss cantonal company taxes

 Issue 2007: nr.003

ECJ cases

• Belgium: Referral to ECJ regarding recharacterisation of interest as dividends
• Belgium: Referral to ECJ regarding the Belgian Excess Dividends Received Deduction issue
• Belgium: Referral to ECJ regarding the Belgian participation exemption
• Belgium: Referral to ECJ regarding the Belgian Inheritance Tax Regime
• France: AG opinion on the French 3% tax on real estate: Elisa case
• Germany: ECJ judgment on write-downs on foreign participations: Rewe Zentralfinanz case
• Germany: AG opinion on exemption method as anti-abuse measure: Columbus Container Services case
• Germany: Referral to ECJ regarding deduction of EU branch losses: Krankenheim Ruhesitz case
• Italy: ECJ judgment on the Italian legislation governing the collection of bets: Placanica and Others case
• Luxembourg: AG opinion in the Lakebrink case
• Sweden: ECJ Hearing in June in Swedish case regarding free movement of capital and a Third Country
• UK: Test claimants in the Thin Cap Group Litigation v CIR

National developments

• Belgium: Belgian minimum tax bases also apply to Belgian companies and Belgian residents practising liberal professions.
• Finland: Supreme Administrative Court decision on transfer of registered office of an European Company (SE) and its effect on different tax issues in Finland
• Finland: Supreme Administrative Court decision on taxation of foreign source income from a personnel fund
• Finland: Advance ruling of the Central Tax Board on outbound dividend taxation of a non-resident individual taxpayer
• Italy: Implementation of Directive 2003/123/EC amending the Parent Subsidiary Directive
• Luxembourg: Administrative Court denies cross-border consolidation
• Norway: Interpretative statement by Ministry of Finance on Cadbury Schweppes case
• Sweden: Exit provisions for stock options
• UK: New tax credit for individuals on non-UK dividends
• UK: Taxation of foreign profits: Consultation

EU developments

• EU: European Commission opens infringement proceedings against 9 Member States over discriminatory taxation of dividend and interest payments to foreign EU pension funds
• EU: European Commission publishes progress report on the CCCTB
• Germany: European Commission requests Germany to end discriminatory rules applied to non-resident tax payers
• Hungary: European Commission opens in depth State aid investigation into Hungarian intra-group interest taxation
• Ireland: European Commission requests that Ireland amend discriminatory provision on the taxation of UK source income
• UK: European Commission investigates remittance basis of taxation for individuals

 Issue 2007: nr.002

ECJ cases

• Belgium: AG opinion on compatibility of Flemish inheritance tax relief for participations in family companies: Geurts and Vogten case
• Belgium: European Commission refers Belgium to the ECJ over discriminatory Flemish registration tax levied on the purchase of houses
• Belgium: European Commission refers Belgium to the ECJ for its discriminatory taxation of inbound dividends
• Denmark: AG opinion on possibility for Member States to prevent tax avoidance under Merger Directive: Hans Markus Kofoed v Skatteministeriet case
• Denmark: ECJ judgement on the deductibility of pension contributions: Commission v Denmark case
• Finland: Referral to the ECJ on the protection of individuals in personal tax data processing: Satakunnan Markkinapörssi and Satamedia case
• France: Referral to the ECJ on the application of the Parent Subsidiary Directive to the taxation of 5% of EU gross dividends
• Germany: ECJ judgement on deduction of expenses in the Source State: Centro Equestre de Leziria Grande Ltd case
• Germany: ECJ judgement on imputation credit on foreign dividends and on limitation of the temporal effects of ECJ judgments: Meilicke case
• Germany: ECJ judgement on joint filing for spouses resident in different Member States: Meindl case
• Netherlands: Referral to the ECJ on transfer tax upon inheritance by a non-resident: the Arens-Sikken case
• Netherlands: Referral to the ECJ on treatment of negative income from an owner-occupied dwelling in the state of employment: the Renneberg case
• Sweden: ECJ judgement on tax deferral for capital gains on private residential property: Commission v Sweden case
• Sweden: Referral to the ECJ over Pension Insurance Issues
• Miscellaneous: European Commission refers Belgium, Spain, Italy, Netherlands and Portugal to the ECJ for their discriminatory taxation of outbound dividends

National developments

• Finland: First deadline for Lex Manninen refund claims to close on 30 April 2007
• France: Non-compatibility with EU law of French "avoir fiscal" and "précompte"
• Germany: German CFC Taxation after the Cadbury Schweppes decision
• Ireland: Amendments to Irish group relief provisions
• Ireland: Amendments to Ireland’s patent royalty exemption
• Ireland: Ireland implements the European Company Regulation (Societas Europaea)
• Italy: Amendments to the domestic Implementation Law for Interest and Royalties Directive
• Latvia: M&S- type cross-border loss relief provisions
• Latvia: No withholding tax on outbound dividends
• Netherlands: AG opinion on the interpretation of the anti-abuse provision in the EC Merger Directive
• Netherlands: New refund procedure for dividend withholding tax for foreign entities (including pension funds)
• Norway: City court judgement on the statute of limitations on getting a refund of tax on inbound dividends
• Norway: Decisions regarding refunds of withholding tax claimed by Dutch pension funds
• Poland: New regulations on dividends
• Portugal: Capital gains exemption regarding sale of owner-occupied dwellings to be amended
• Sweden: Tax Board rulings on group contributions to foreign affiliates
• UK: Court of Appeal judgement concerning cross-border loss relief

EU developments

• EU: European Commission proposes new EU guidelines to avoid transfer pricing disputes
• EU: European Commission publishes annual report on EU tax activities in 2006
• Miscellaneous: European Commission decides whether energy tax breaks in Germany, France, Ireland and Italy constitute infringements of state aid rules
• Belgium: European Commission requests Belgium to terminate discriminatory taxationconcerning houses outside Belgium
• Greece: European Commission sends Greece a formal request to end its discriminatory taxation of foreign partnerships
• Italy: European Commission requests Italy to abolish the withholding tax on dividends distributed to Dutch parent companies
• Italy, Spain: European Commission closes two infringement proceedings against Italy and Spain
• Netherlands: European Commission opens a formal investigation procedure for one part of the proposed Dutch patent box (‘grouprentebox’)
• Portugal: European Commission requests Portugal to end discriminatory taxation against foreign service providers
• Switzerland: European Commission adopts formal decision on Swiss company tax regimes

 Issue 2007: nr.001

ECJ cases

• Belgium: ECJ judgment on Belgian foreign tax credit regime (Kerckhaert-Morres case)
• Belgium: ECJ judgment on withholding tax on construction works carried out by nonregisteredcontractors (Commission v Belgium case)
• Belgium: A-G opinion on the application of a minimum tax base for non-residents (Talotta case)
• Finland: ECJ judgment on taxation of non-residents´ pension income (Turpeinen case)
• France: ECJ judgment on withholding tax on outbound dividends (Denkavit case)
• Germany: Referral to the ECJ on transitional corporation tax rules
• UK: ECJ judgment on corporation tax treatment of inbound dividends (Test Claimants in the FII Group Litigation v Commissioners of Inland Revenue case)
• UK: ECJ judgment on corporation tax treatment non-resident shareholders (Class IV of the ACT Group Litigation v Commissioners of Inland Revenue case)

National developments

• Finland: Implementation of 2005 amendments to EU Merger Directive
• France: Supreme Court rules tax on advertising expenses incurred by companies is State aid not compatible with EC Law
• Germany: Tax bills enacted
• Netherlands: Association Agreement with Turkey prohibits restrictions of freedom of establishment
• Netherlands: Court of Appeal refuses cross-border fiscal unity
• Netherlands: A-G opinion on non-discriminatory tax measures
• Netherlands: A-G opinion on free movement of capital and minority and majority shareholdings in the Czech Republic under the Europe Agreement and Art. 56 and 57 EC
• Portugal: Binding information on thin capitalisation rules
• Portugal: State Budget 2007
• Spain: Tax court ruling against Spanish pre-2004 thin capitalisation rules
• Sweden: Swedish Tax Board for Advance Rulings decided in a case regarding exit taxation upon corporate migration
• Sweden: Swedish Tax Board for Advance Rulings decided in two cases regarding cross border tax consolidation
• Switzerland: Swiss parliament approves the revision protocol of the Swiss-Spanish Double Tax Treaty
• UK : Amendments to controlled foreign company rules following ECJ judgment in the Cadbury Schweppes case
• UK : Reduction in time limit for mistake of law claims

EU developments

• Belgium: Commission requests Belgium to amend tax discriminatory rules on donations to foreign charities
• EU: Commission unfolds new proposals for closer coordination of EU national direct tax systems, including exit taxes and cross-border loss relief
• EU: Commission consults with business and academics on CCCTB
• France: French fiscal economic interest groups (EIGs) constitute incompatible State aid
• Switzerland: Extension of the EU - Swiss Savings Tax Agreement to Bulgaria and Romania

Issue 2006: nr.006

Issue 2006: nr.006: September-October 2006 (284kb)

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 (263kb)

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 (261kb)

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

• Germany: A-G opinion on cross-border legal mergers (SEVIC case)
• Germany: ECJ judgment on deductibility of cross-border maintenance payments (Schempp case)
• Germany: First German CFC case referred to the ECJ (Kolumbus Container Services case)
• Hungary: Hungarian local company turnover tax referred to the ECJ (Lakép Kft et al case)
• The Netherlands: A-G opinion on Dutch deemed residence rule on inheritance tax and compatibility with free movement of capital between the EU and third countries (Van Hilten case)
• The Netherlands: ECJ judgment on Most Favoured Nation doctrine (D. case)
• The Netherlands: A-G opinion on capital tax consequences of direct capital contribution by a parent company to its sub-subsidiary (Senior Engineering Investments B.V. case)
• Sweden: A-G opinion on different taxation of capital gains for residents and non-residents (Bouanich case)
• United Kingdom: UK CFC and foreign dividend Group Litigation Order test case referred to ECJ
• United Kingdom: Another UK CFC case referred to the ECJ (Vodafone 2 case)

National developments

• Austria: Lower Court judgment on Most Favoured Nation doctrine
• France: Lower Court judgment on French group taxation
• Germany: Lower Court judgment on deductibility of interest relating to foreign subsidiaries
• Ireland: Guidance Notes EU Savings Directive
• The Netherlands: A-G opinion on different taxation of domestic and foreign dividends and free movement of capital
• The Netherlands: Supreme Court judgment on EU Directive on indirect taxes on the raising of capital
• The Netherlands: Supreme Court judgment on the allocation of fiscal jurisdiction
• Sweden: Lower Court judgment on tax deferral upon exchange of shares

EU developments

• EC takes action against several Member States over national implementation measures
• Belgium: EC refers Belgium to ECJ over Walloon inheritance and gift tax laws
• Finland: EC requests Finland to amend discriminatory rules on income tax deductions for resident individuals with foreign source income
• Spain: EC requests Spain to amend discriminatory tax laws
• Sweden: EC requests Sweden to amend discriminatory rules regarding tax relief on capital gains from sales of owner-occupied dwellings

 Issue 2005: nr.001

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

ECJ cases

• Austria: Referral to ECJ on free movement of capital and third countries (Holböck case)
• Belgium: Referral to ECJ on foreign tax credits for individuals (Kerckaert-Morres case)
• Belgium: Tax treatment of pension capital (Commission v. Belgium)
• Finland: Referral to ECJ on cross-border loss relief
• France: Referral to ECJ on dividend withholding tax on distributions to EU parent (Denkavit case)
• Germany: A-G opinion in case on German system of branch taxation (CLT-UFA case)
• Netherlands: A-G opinion in case on general levy rebate (Blanckaert case)
• Sweden: Referral to ECJ on dividend distribution in the form of shares (A case)
• Sweden: Referral to ECJ on payroll costs and dividend tax exemption (A and B case)
• United Kingdom: A-G opinion on cross border loss relief (Marks and Spencer case)

National developments

• Austria: Tax treatment of cross-border dividends not compatible with EU law
• Belgium: Amendments to the regime for dividend taxation
• Finland: Response to the ECJ’s Manninen ruling
• France: Supreme Court rules French legislation on abuse of law compatible with EU law
• Germany: Reaction to EC Treaty infringement proceedings regarding exit tax
• Germany: Cross-border relief for “tax-exempt” (branch) losses
• Ireland: Changes triggered by EC Treaty non-discrimination requirements in 2005 Finance Act
• Italy: Implementation of Interest/Royalties Directive
• Luxembourg: Extension of availability of foreign tax credits
• Netherlands: Marks and Spencer flavour in proposals for tax reform 2007
• Norway: High court follows the EFTA Court Fokus Bank ruling
• Portugal: Inbound dividends: dividend exemption for individuals expanded to foreign dividends
• Sweden: CFC legislation ruled incompatible with EU law
• Sweden: Swedish group contribution system incompatible with EU law
• Switzerland: Interpretation of Swiss-EU Savings Agreement of the Swiss Federal Tax Authorities

EU Direct Tax Group activities

• European Commission welcomes EFRP/EUDTG reports on discriminatory treatment pension funds