Regina v Inland Revenue Commissioners Ex Parte Commerzbank: ECJ 21 Jul 1993

UK provision on company domicile/taxation is unfair to Overseas companies.
Europa Freedom of movement for persons – Freedom of establishment – Tax legislation – Right to repayment supplement when tax paid but not due is refunded – Refund only available to companies resident for tax purposes in national territory – Not permissible – Tax not due on the ground that residence for tax purposes is abroad – Irrelevant (EEC Treaty, Arts 52 and 58)
Articles 52 and 58 of the Treaty prevent the legislation of a Member State from granting repayment supplement on overpaid tax to companies which are resident for tax purposes in that State whilst refusing the supplement to companies resident for tax purposes in another Member State. The fact that the latter would not have been exempt from tax if they had been resident in that State is of no relevance in that regard. Although it applies independently of a company’ s seat and therefore of the factor connecting it with the legal system of a particular State, the use of the criterion of fiscal residence within national territory for the purpose of granting repayment supplement on overpaid tax is liable to work more particularly to the disadvantage of companies having their seat in other Member States since it is most often those companies which are resident for tax purposes outside the territory of the Member State in question.

Citations:

Times 21-Jul-1993, C-330/91, [1993] EUECJ C-330/91

Links:

Bailii

Jurisdiction:

European

Income Tax, European

Updated: 23 July 2022; Ref: scu.86933