Opinion of the Advocate General — ECLI:EU:C:2006:418
Date: 2006-06-22
Language of the case: German
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Freedom to provide services
Procedure: Reference for a preliminary ruling
Origin: Germany

Summary of the Judgment Freedom to provide services – Restrictions – Tax legislation (EC Treaty, Art. 59 (now, after amendment, Art. 49 EC)) Article 59 of the Treaty (now, after amendment, Article 49 EC) does not preclude national legislation which makes repayment of corporation tax deducted at source on the income of a taxpayer with restricted tax liability subject to the condition that the operating expenses in respect of which a deduction is claimed for that purpose by that taxpayer have a direct economic connection to the income received from activities pursued in the Member State concerned, on condition that all the costs that are inextricably linked to that activity are considered to have such a direct connection, irrespective of the place and time at which those costs were incurred. By contrast, that article precludes such national legislation in so far as it makes repayment of that tax to that taxpayer subject to the condition that those same operating expenses exceed half of that income. (see para. 38, operative part)