Opinion of the Advocate General — ECLI:EU:C:1998:283
Date: 1998-06-11
Language of the case: Spanish
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Indirect taxation
Procedure: Reference for a preliminary ruling
Origin: Spain

Summary of the Judgment
Tax provisions — Harmonisation of laws — Indirect taxes on the raising of capital — Taxation
on notarial deeds recording the repayment of debenture loans — Not permissible
(Council Directive 69/335, Arts 11(b) and 12(1)(d))
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SUMMARY —JOINED CASES C-31/97 AND C-32/97
Article 11(b) of Directive 69/335 concerning
indirect taxes on the raising of capital must be
interpreted as meaning that the prohibition of
taxation on debenture loans extends to taxa­
tion on the repayment of such loans. Although
that article does not expressly mention the
repayment of debenture loans, nevertheless,
prohibiting the levying of duty when deben­
ture loans are issued but authorising it when
such loans are repaid would have the effect,
contrary to the objective pursued by the
Directive, of taxing loans as overall opera­
tions for raising capital. Moreover, Article
11(b) prohibits not only taxation on deben­
ture loans, but also on any formalities relating
thereto.
Therefore Article 11(b) must be interpreted
as meaning that the prohibition of taxation
on debenture loans applies to a duty on
notarial deeds recording the repayment of
loans. Such a duty cannot come within the
derogation provided for in Article 12(1)(d) of
the Directive, since the repayment of a deben­
ture loan constitutes a discrete financial trans­
action, separate from the discharge of a mort­
gage registered in order to secure the
debentures resultine from the loan.
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