News

28.09.2017

Tax & Financial Standards New

Tax & Financial Standards

New

Judgments of the ECJ

For September

New Cases

C-605/15 of 21 September 2017

Value added tax. Exemptions for certain activities in the public interest - an exemption of the supply of services by independent groups of persons, which are carrying on an activity which is exempt from VAT - Applicability to insurance

Key aspects of the decision in the economic range:

VAT legislation. Exemption of an independent group of persons pursuant to Article 132(1)(f) of the VAT Directive. Application to insurance services. Obligation on the Member States to expand upon a directly-effective provision of a directive.

2017 C- 326/15 of 21 September

The common system of value added tax - Exemptions for certain activities in the public interest - An economic activity in the area of financial services - Exemption for the supply of services by independent groups of persons for their members

Key aspects of the decision in the economic range:

Supply of services by independent groups of persons, who are carrying on an activity which is exempt from VAT. Exemptions for financial services. VAT exemption when the taxable person has applied an uplift to the transactions, as required under the legislation on direct taxation of the Member State where the taxable person is established.

Judgment concerning the National Tax Authority’s refusal of the request submitted by DNB Banka to have its value added tax (VAT) declarations corrected.

C - 429/16 of 21 September 2017

Social policy - Collective redundancies - Assimilation to redundancies of ‘terminations of an employment contract which occur on the employer’s initiative’ - Unilateral amendment by the employer of working and pay conditions - Concept of ‘Concept of ‘redundancies’’

Key aspects of the decision in the economic range:

Approximation of the laws of the Member States relating to collective redundancies. 

            Determination of the employer’s ‘intention’ to effect redundancies.

 Assimilation to redundancies of ‘terminations of an employment contract which occur on the employer’s initiative’. Notice on the ground of the ‘need to carry out restructuring of the  personnel costs dictated by the difficult financial situation’. Unilateral amendment by the employer of working and pay conditions.

            Proceedings concerning a hospital’s decision to issue employees with notices of amendment, leading to the termination of the employment relationships of some of those employees without the redundancy procedure.

C-628/15 of 14 September 2017

Free movement of capital - Corporation tax - Refusal to grant the tax credit to shareholders - remedies to shareholders who have received dividends but have not obtained a tax credit in respect of those dividends

Key aspects of the decision in the economic range:

A right to a tax credit to a pension fund not subject to tax on its investment income in respect of its receipt of dividends representing foreign-sourced income. Refusal to grant the tax credit to shareholders not subject to tax on investment income for dividends arising from foreign income. Reimbursement of tax paid in advance in the case of dividends paid by companies established in other Member States to a company established in the United Kingdom. Tax credit unlawfully withheld.

Judgment concerning the refusal to recognise a right to a tax credit to a pension fund not subject to tax on its investment income in respect of its receipt of dividends representing foreign-sourced income of a company resident for tax-purposes in the United Kingdom.

                                                     C-441/16 of September 2017

The right to a refund of VAT - Taxable person residing in another Member State - Objective elements confirming the intention of the taxable person to use the imported goods in the course of his economic activities

Key aspects of the decision in the economic range:

Arrangements for the refund of value added tax to taxable persons not established in the territory of the country. Necessary information as regards the substantive condition for the refund relating to the use of the imported goods in connection with taxable transactions. Serious risk of non-completion of the transaction that justified the importation.

Judgment in proceedings relating to the refund of value added tax.

C-186/16 of 20 September 2017

Consumer protection - loan agreement concluded in a foreign currency. Scope and level of detail of the information required to be provided by the bank - Time for the assessment of whether there is a significant imbalance between the rights and obligations of the parties arising under the contract - Notion of ‘main subject matter of the contract’

Key aspects of the decision in the economic range:

Unfair terms in consumer contracts. Exchange rate risk born entirely by the consumer. Significant imbalance in the parties’ rights and obligations arising under the contract. A term incorporated in a loan agreement entered into in a foreign currency concluded between a seller or supplier and a consumer, which has not been negotiated individually, pursuant to which the credit must be repaid in the same currency. Level of information to be procured by the bank. Notion of ‘main subject matter of the contract’.

Judgment in proceedings concerning the alleged unfair terms incorporated in loan agreements providing, in particular, for the repayment of loans in the same foreign currency as that in which they were disbursed.

C‑569/15 of 13 September 2017

Application of social security schemes - Migrant workers - Income tax

Key aspects of the decision in the economic range:

Application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community. Person normally employed in the territory of two or more Member States . Person employed in one Member State and engaged in paid employment on the territory of another Member State during a period of unpaid leave lasting three months.

            Proceedings, concerning an assessment in respect of income tax and social insurance contributions.

C-132/16 of 14 September 2017

VAT legislation - deduction of input tax. Services supplied free of charge for the benefit of the municipal infrastructure, link with the economic activity of the taxable person - Services relating to construction or improvement of a property belonging to a third party - Entry of costs incurred for services carried out in the accounts as part of the taxable person’s general costs

Key aspects of the decision in the economic range:

The right to deduct input VAT in respect of a supply of services consisting of the construction or improvement of a property owned by a third party when that third party enjoys the results of those services free of charge and when those services are used both by the taxable person and by the third party in the context of their economic activity. Determination of the existence of a direct and immediate link with the economic activity of the third party or the economic activity of the taxable person.

Judgment in proceedings concerning two adjusted tax notices addressed to ‘Iberdrola Inmobiliaria Real Estate Investments’ EOODand relating to the entitlement to deduct input value added tax.

C-6/16 of 7 September 2017

Direct taxation - Withholding tax - Dividends distributed by a resident subsidiary to a non-resident parent company controlled directly or indirectly by one or more residents of third States. Fraud, tax evasion and abuse

Key aspects of the decision in the economic range:

The common system of taxation applicable in the case of parent companies and subsidiaries of different Member States. Withholding tax on dividends paid abroad. Prevention of tax evasion. Misuse of rights.

The case essentially concerns the question of the circumstances in which a Member State may refuse - on grounds of preventing tax evasion - an exemption from withholding tax that would normally be granted for the dividend payments of a resident subsidiary to its non-resident parent company.

Judgment in proceedings, concerning the refusal of the French tax authorities to exempt from withholding tax dividends distributed by Euro Stockage to Enka, the parent company of Euro Stockage.

C‑248/16 of 7 September 2017

Control of concentrations between undertakings - Change in the form of control of an existing undertaking - Definition of ‘concentration’

Key aspects of the decision in the economic range:

Control of concentrations between undertakings. Concentrations that may significantly impede effective competition in the internal market or in a substantial part of it. Division of competences between the European Commission and the national bodies responsible for merger control.

            Change in the form of control of an existing undertaking which, previously exclusive, becomes joint. Change from an Existing non-full-function undertaking to a Community non-full-function undertaking. Creation of a joint venture performing on a lasting basis all the functions of an autonomous economic entity.

            Proceedings concerning an alleged concentration.

Expect:

Reference for a preliminary ruling concerning the exemption from VAT of the supply of buildings or parts of buildings and of the land occupied by them - Concept of first residence - Concept of transformation

The referring court seeks to ascertain whether the Polish legislation transposing that part of Directive 2006/112 into national law (both as regards the concept of 'first inhabitation' and the concept of 'conversion of buildings') is consistent with With that Directive.