C24203
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You are here: BAILII >> Databases >> Court of Justice of the European Communities (including Court of First Instance Decisions) >> Weidert and Paulus (Free movement of capital) [2004] EUECJ C-242/03 (15 July 2004) URL: https://www.bailii.org/eu/cases/EUECJ/2004/C24203.html Cite as: [2004] EUECJ C-242/03, [2004] EUECJ C-242/3 |
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JUDGMENT OF THE COURT (First Chamber)
15 July 2004 (1)
(Free movement of capital -“ Income tax -“ Special relief for expenditure incurred on the acquisition of shares -“ Benefit of the advantage restricted to the acquisition of shares in companies established in the Member State concerned)
In Case C-242/03, REFERENCE to the Court under Article 234 EC by the Cour Administrative (Luxembourg) for a preliminary ruling in the proceedings pending before that court between Ministre des Financesand
Jean-Claude Weidert,Élisabeth Paulus, on the interpretation of Article 56(1) EC and Article 58(1)(a) EC,THE COURT (First Chamber),
after considering the written observations submitted on behalf of:
-“ Mr Weidert and Ms Paulus, by P. Kinsch, avocat, -“ the Luxembourg Government, by S. Schreiner, acting as Agent, -“ the Commission of the European Communities, by R. Lyal and C. Giolito, acting as Agents,having regard to the Report of the Judge-Rapporteur,
after hearing the Opinion of the Advocate General at the sitting on 12 February 2004,
gives the following
-˜Paragraph 1. In the circumstances and within the limits specified below, resident taxpayers who are natural persons and acquire shares representing cash contributions in fully-taxable resident capital companies defined in subparagraph 1 of paragraph 2 below shall enjoy the tax advantages laid down in paragraph 4 below.-¦Paragraph 4. (1) The taxpayers referred to in paragraphs 1 and 3 above shall be entitled on request to relief from income tax in the form of relief for investment in personal property, which may, notwithstanding the provisions of Article 153, be claimed where the taxpayer is subject to direct assessment.(2) The relief shall be subject to a maximum of LUF 60 000 per year in respect of all acquisitions of securities and interests therein held by the taxpayer at the end of the tax year. That limit shall be doubled in the case of joint assessment under Article 3.Paragraph 5. For the tax advantages set out in paragraph 4 to apply, the following conditions must be satisfied: (a) the acquisition of the securities within the meaning of subparagraph 2 of paragraph 2 above must have occurred either on the formation, or on an increase of capital for valuable consideration, of a fully-taxable resident capital company, as defined in subparagraph 1 of paragraph 2 above; -¦-™
-˜Article 10 Dividends:(1) Dividends declared by a company having its seat in a Contracting State in favour of a resident of the other Contracting State shall be taxable in the latter State.(2) Nevertheless, those dividends may be taxed in the Contracting State in which the company declaring the dividends has its seat and under the laws of that State, but the tax so payable may not exceed:-¦(b) 15 per cent of the gross amount of the dividends in any other case.-™
-˜Is Article 129c of the Income Tax Law of 4 December 1967, as amended, in the version applicable to the 2000 tax year, which, subject to certain conditions and limits, grants tax relief to taxpayers who are natural persons and acquire shares representing cash contributions in fully-taxable resident capital companies, compatible with the principle of the free movement of capital within the European Community as laid down by Article 56(1) of the EC Treaty, taking account of the restrictions on that principle laid down, inter alia, by Article 58(1)(a) of the EC Treaty?-™
On those grounds,
THE COURT (First Chamber),
in answer to the questions referred to it by the Cour Administrative by judgment of 3 June 2003, hereby rules:Article 56(1) EC and Article 58(1)(a) EC preclude a legal provision of a Member State which denies the availability of income tax relief to natural persons for the acquisition of shares representing cash contributions in capital companies established in other Member States.
Jann |
Rosas |
Silva de Lapuerta |
Registrar |
President of the First Chamber |
R. Grass |
P. Jann |
1 -“ Language of the case: French.