Opinion of the Advocate General — ECLI:EU:C:1997:329
Date: 1997-06-26
Language of the case: Italian
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Indirect taxation
Procedure: Reference for a preliminary ruling
Origin: Italy

Summary of the J u d g m e n t 
1. Tax provisions — Harmonization of laws — Indirect taxes on the raising of capital — Direc­
tive 69/335 — Scope — National tax on the appreciation in value of immovable property, 
determined at the time of its contribution to a capital company — Not covered 
(Council Directive 69/335, Art. 4(1 )(c)) 
2. Tax provisions — Harmonization of laws — Indirect taxes on the raising of capital — Direc­
tive 69/335 — Scope — Registration charges, mortgage registration fees and land register fees 
charged in connection with the contribution of immovable property to a capital company — 
Covered — Authorized pursuant to Article 12 of Directive 69/335 — Condition 
(Council Directive 69/335, Arts 10 and 12) 
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SUMMARY — CASE C-42/96 
1. On a proper construction, Directive 
69/335 concerning indirect taxes on the 
raising of capital, as amended by Direc­
tives 73/79, 73/80, 74/553 and 85/303, 
does not apply to a national tax on any 
appreciation in the value of immovable 
property, determined at the time when 
such property was contributed to a capi­
tal company. Being a general charge on 
the appreciation in value of immovable 
property, such a tax does not constitute 
capital duty levied on an increase in capi­
tal by contribution of assets of any kind, 
within the meaning of Article 4(1 )(c) of 
Directive 69/335. 
2. On a proper construction, Directive 
69/335 concerning indirect taxes on the 
raising of capital, as amended by Direc­
tives 73/79, 73/80, 74/553 and 85/303, 
applies to taxes such as registration 
charges, mortgage registration fees and 
land register fees, in so far as they are lev­
ied on transactions transferring property 
rights in immovable property on the 
occasion of the contribution of such 
property to a capital company. In such 
cases, those three charges constitute indi­
rect taxes with the same characteristics as 
capital duty and are therefore caught by 
the prohibition laid down in Article 10 of 
Directive 69/335. However, Article 12 of 
that Directive must be interpreted as 
authorizing Member States — by way of 
a derogation from the prohibition in 
Article 10 — to levy such taxes, provided 
that they do not exceed those applicable 
to like transactions in the Member State 
charging them. 
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