EU tax news

EU tax news is a free bi-monthly newsletter with summaries of relevant community law news and EU policy developments in the field of direct taxation. The newsletter is prepared by members of PwC's EU direct tax group (EUDTG).

Below you will find the 2007-2009 issues of the EUDTG's bi-monthly EU tax newsletter. For older issues please visit the archive.

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 Issue 2009: nr.002


Download Issue 2009: nr.002: January - February 2009 (453kb)

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


Download Issue 2009: nr.001: November - December 2008 (323kb)

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

 Issue 2008: nr.006


Download Issue 2008: nr.006: September - October 2008 (567kb)

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


Download Issue 2008: nr.005: July - August 2008 (323kb)

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


Download Issue 2008: nr.004: May - June 2008 (445kb)

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


Download Issue 2008: nr.003: March - April 2008 (438kb)

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


Download Issue 2008: nr.002: January - February 2008 (383kb)

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


Download Issue 2008: nr.001: November - December 2007 (402kb)

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


Download Issue 2007: nr.006: September - October 2007 (261kb)

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


Download Issue 2007: nr.005: July - August 2007 (260kb)

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


Download Issue 2007: nr.004: May - June 2007 (304kb)

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


Download Issue 2007: nr.003: March - April 2007 (295kb)

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


Download Issue 2007: nr.002: January - February 2007 (320kb)

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


Download Issue 2007: nr.001: November - December 2006 (250kb)

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

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