News - tax case

Land fee

Following its takeover of the Weinbau co-operative the applicant changed Weinbau's name. For this a fee was charged. The applicant brought an action against that fee notice on the basis that Article 10(c) of Council Directive 69/335 (concerning indirect taxes on the raising of capital) prohibited such a fee. Article 12(1)(b) of the directive states that Member States might charge transfer duties including land registration taxes on the transfer to a company firm association or legal person operating for profit of businesses or immovable property situated within their territory. The matter was referred to the European Court of Justice.
The European Court ruled that the levying of a tax such as that at issue in the main proceedings constituted a transfer duty within the meaning of Article 12(1)(b). However that tax could only be authorised if in accordance with...