Opinion of the Advocate General — ECLI:EU:C:2007:413
Date: 2007-07-05
Language of the case: Finnish
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Indirect taxation
Procedure: Reference for a preliminary ruling
Origin: Finland

Summary of the Judgment Tax provisions – Harmonisation of laws – Indirect taxes on the raising of capital – Capital duty charged on capital companies (Council Directive 69/335, Art. 12(1)( a) and (c)) Directive 69/335 concerning indirect taxes on the raising of capital must be interpreted as meaning that Article 12(1)(c) does not apply to the charging of a duty, such as Finnish capital transfer tax, where securities are transferred as a contribution to a capital company which gives new shares of its own as consideration for that transfer. Article 12(1)(a) of the directive allows such a duty to be charged. Whereas Article 12(1)(a) and (b) of Directive 69/335 concern specific categories of assets, namely securities on the one hand and immovable property and businesses on the other, Article 12(1)(c) applies to assets in general, that is ‘assets of any kind’ and, furthermore, makes the levy of transfer duties subject to the condition that such property is transferred ‘for a consideration other than shares in the company’. In those circumstances, according to the principle of effectiveness, the definition of ‘assets of any kind’ in Article 12(1)(c) of Directive 69/335 may extend only to assets of a kind other than those which are mentioned in Article 12(1)(a) and (b), that is ‘securities’ and ‘businesses or immovable property’ respectively. Interpreting Article 12(1)(c) of Directive 69/335 as referring to ‘assets of any kind’, including those covered in Article 12(1)(a) and (b), would have the effect of totally absorbing the content of those subparagraphs so that their existence would have no meaning or purpose. (see paras 37-39, 43, operative part)