22. Dezember 2017 ECJ – German Anti-Treaty-Shopping Rule infringes EU law On 20 December 2017 the European Court of Justice (ECJ) issued its decision on two cases referred to it by the Cologne Tax Court on the compatibility of the anti-abuse rule in Section 50d Income Tax Act (ITA) with EU law. According to Section 50d (3) ITA certain intermediary foreign companies are not entitled to a (full or partial) refund of German withholding tax; without a preceding oral hearing the ECJ took the view that the section was incompatible with both the Parent-Subsidiary Directive and the freedom of establishment. - See update further below! Kategorien: European Court of JusticeSchlagwörter: freedom of establishment, anti-treaty sh ...
03. März 2016 Air passenger duty does not offend against EU law The Supreme Tax Court has held that air passenger duty as levied in Germany is not prohibited under EU law and that there is no need to lay the question before the ECJ. Kategorien: Supreme Tax Court casesSchlagwörter: excise duty, air passenger duty
08. Februar 2022 Rules for limited inheritance tax liability only in part com ... According to the decision of the European Court of Justice (ECJ), the different inheritance tax allowances in the case of unlimited and limited tax liability is in line with EU law, specifically it is not in breach of the free movement of capital. However, the refusal of the German tax office to deduct liabilities linked to the inheritance in the case of limited tax liability is not compatible with EU law. Kategorien: European Court of JusticeSchlagwörter: limited inheritance tax liability, inher ...
06. November 2019 CFC rules considered to be in line with EU law Following a ruling by the European Court of Justice (ECJ) earlier this year, the Supreme Tax Court held in its decision of 31 October 2019 that the incorporation into the tax base of controlled company income from invested capital from an intermediary company domiciled in Switzerland in the financial year 2006 may restrict the free movement of capital, but it is justified through compelling reasons of public interest and does not therefore contravene EU law. Kategorien: Supreme Tax Court casesSchlagwörter: CFC provisions, free movement of capital ...
30. Januar 2020 Deduction of input VAT for a home office: Does the requireme ... The Supreme Tax Court has doubts as to whether EU law precludes national case law which states that the decision to allocate an asset to private or business use must be submitted to the tax office by the end of the statutory period for submission of the annual VAT return. Accordingly, in a ruling of 18 September 2019 ( XI R 3/19 published on 30 January 2020) it has requested clarification from the European Union Court of Justice (ECJ). Kategorien: Supreme Tax Court casesSchlagwörter: Home office, input VAT, allocation of us ...
22. Dezember 2017 VAT: Divergent treatment of discounts on medicinal products ... On 20 December 2017 the European Court of Justice (ECJ) held that the divergent VAT treatment of discounts granted by pharmaceutical companies (i.e. trader/entrepreneur for VAT purposes) to statutory (public) health insurance funds and private health insurance funds constitutes an infringement of EU law. The ECJ followed the Advocate General’s opinion and confirmed the doubts of the German Supreme Tax Court which had referred the question to the ECJ under reference V R 42/15. Kategorien: European Court of JusticeSchlagwörter: VAT, price reduction
22. März 2022 Portuguese dividend withholding tax for foreign UCITS in bre ... Does the free movement of capital require a Member State to tax non-resident and resident investment vehicles according to the same tax system? This is the question raised in the request for a preliminary ruling submitted to the European Court of Justice (ECJ) by the Portuguese tax court (Tax Arbitration Tribunal). Contrary to the Opinion of the Advocate General the ECJ decided that the withholding tax on dividends paid to non-resident Undertakings for Collective Investments in Transferable Securities (UCITS) is in violation with current EU Law. Kategorien: European Court of JusticeSchlagwörter: UCITS, portuguese dividend withholding t ...
31. März 2022 ECJ: Withholding tax on notional interest in case of interes ... In a Bulgarian case the European Court of Justice (ECJ) held that EU law does not preclude national legislation imposing withholding tax on notional market-based interest (mandated under local tax anti-avoidance rules). Such withholding tax cannot be exempt under the regimes of the IRD (EU Interest - Royalty Directive 2003/49/EC) and the PSD (EU Parent-Subsidiary Directive 2011/96/EU) as there have been no actual payments of interest. Kategorien: European Court of JusticeSchlagwörter: notional tax, interest-free loan, notion ...
06. Juni 2017 No deduction of final branch losses following EU law. Payments made to a purchaser to compensate for a poor economic position following the transfer of an interest in a partnership may not be deducted from the domestic tax base to the extent they are attributable to a foreign branch (i.e. a permanent establishment for tax treaty purposes) of the partnership. In its decision the Supreme Tax Court cited a decision of the European Court of Justice (ECJ) from 2015. Kategorien: Supreme Tax Court casesSchlagwörter: International Tax, EU Law, Final PE loss ...
06. Juni 2018 German CFC rules may be compatible with EU law The European Court of Justice held that the German CFC regulations – as such – do not generally pose a restriction on the freedom of establishment. Kategorien: European Court of JusticeSchlagwörter: CFC provisions, freedom of establishment ...
24. November 2017 German exclusion from withholding tax relief in conflict wit ... The German anti- treaty shopping rule denying full or partial relief from withholding tax, as otherwise prescribed under a double tax treaty or applicable EU directive, is questioned by the Lower Tax Court of Cologne as being in violation of community law. The question has been referred to the ECJ in number of cases. Kategorien: Supreme Tax Court cases, From EuropeSchlagwörter: dividend withholding tax, treaty relief, ...
26. Juni 2018 Current version of German anti-treaty shopping legislation i ... On 25 June 2018, the European Court of Justice published its decision of 14 June 2018 concerning the current version of the German anti-treaty /anti-directive shopping legislation. Kategorien: European Court of JusticeSchlagwörter: freedom of establishment, Parent/Subsidi ...
20. Juni 2018 ECJ – Refusal to set-off EU-branch losses in Denmark not com ... A Danish company may set off the final losses of its foreign EU-permanent establishment against its own taxable income, provided it can prove that the losses incurred are final and the company has exhausted the possibilities to deduct those losses in that Member State. Kategorien: From EuropeSchlagwörter: Final PE losses, international joint tax ...
25. März 2022 Documentation requirements for refund of withholding tax on ... In his Opinion of 20 January 2022, the Advocate General (AG) suggests to the European Court of Justice (ECJ) that Germany’s requirements for withholding tax claims filed by non-resident corporate taxpayers with seat or place of management in the EU or EEA are too strict in two respects and thus in violation of Article 63 TFEU on the free movement of capital. Kategorien: European Court of JusticeSchlagwörter: portfolio dividend, documentation requir ...
26. Februar 2021 Swedish interest deduction rule incompatible with EU law In a recent judgement the European Court of Justice (ECJ) has clarified that it is contrary to the freedom of establishment to deny the deduction of interest costs on a loan from a normally taxed group company, if this would not have happened had the loan been granted from a normally taxed Swedish group company instead. Kategorien: European Court of JusticeSchlagwörter: interest deduction, cross-border loan
06. August 2021 Penalties due to incomplete cross border documentation in br ... In its referral to the European Court of Justice (ECJ) for a preliminary ruling, the Regional Tax Court of Bremen raises doubts as to whether the penalty surcharge under Section 162 (4) Fiscal Code due on failure to present proper documentation in cross border business relations is in line with the freedom of establishment in Art. 49 TFEU and the freedom to provide services (Art. 56 TFEU). Kategorien: Tax CourtSchlagwörter: penalty surcharge, cross border transact ...
29. Juni 2017 Refusal to deduct French social security contributions not c ... The German refusal of a deduction for social security contributions paid by a German resident French government official does not meet the EU-requirement for free movement of workers, since its effective exclusion under German law placed her at a comparative disadvantage vis-à-vis her German colleague. Kategorien: From EuropeSchlagwörter: social security contributions, free move ...
27. September 2018 German trade tax exemption for third country dividends in br ... On 20 September 2018, the European Court of Justice held that the “activity clause” in the German trade tax act for third country sourced dividends is contrary to the free movement of capital (Art. 63 of the Treaty on the Functioning of the EU - TFEU). Kategorien: European Court of JusticeSchlagwörter: trade tax exemption, third country divid ...
31. Januar 2018 German taxation of dividends paid to Canadian pension fund i ... The Lower Tax Court of Munich referred preliminary questions to the European Court of Justice regarding the compatibility of the German regime of dividend withholding tax imposed on a Canadian pension fund with the free movement of capital as provided in Article 63 of the Treaty on the Functioning of the European Union. Kategorien: European Court of JusticeSchlagwörter: pension fund, dividend withholding tax, ...
17. Mai 2022 Different VAT treatment of online gambling versus physical ( ... In a recent ruling, the Tax Court of Muenster raised doubts with respect to the EU principles of fiscal neutrality on the VAT liability arising in connection with revenues from terrestrial (physical) gambling machines as opposed to the existing VAT exemption available for online gambling. Kategorien: Tax CourtSchlagwörter: VAT Exemption, virtual game
