Keywords

Summary



Keywords

1 . TAX PROVISIONS - INTERNAL TAXATION - SYSTEM OF DIFFERENTIAL TAXATION - WHETHER PERMISSIBLE - CONDITIONS - PURSUIT OF OBJECTIVES COMPATIBLE WITH COMMUNITY LAW - ABSENCE OF DISCRIMINATORY OR PROTECTIVE CHARACTER

( EEC TREATY , ART . 95 )

2 . TAX PROVISIONS - INTERNAL TAXATION - TAXES WHOSE EFFECT IS TO PROTECT DOMESTIC PRODUCTION - COMPETING DOMESTIC AND IMPORTED PRODUCTS - COMPETING PRODUCTS - CRITERIA OF ASSESSMENT

( EEC TREATY , SECOND PARAGRAPH OF ART . 95 )

3 . TAX PROVISIONS - INTERNAL TAXATION - SYSTEM OF DIFFERENTIAL TAXATION - HIGHER RATE OF TAX BORNE BY PRODUCTS COVERED BY A DESIGNATION OF ORIGIN OR PROVENANCE - NO PROTECTION OF THE DESIGNATION OF ORIGIN OR PROVENANCE OF SIMILAR OR COMPETING NATIONAL PRODUCTS - SYSTEM OF TAXATION NOT PERMISSIBLE

( EEC TREATY , ART . 95 )

4 . TAX PROVISIONS - INTERNAL TAXATION - SYSTEM OF DIFFERENTIAL TAXATION - HIGHER RATE OF TAX BORNE BY LUXURY PRODUCTS - WHETHER PERMISSIBLE - CONDITIONS

( EEC TREATY , ART . 95 )

Summary

1 . IN ITS PRESENT STAGE OF DEVELOPMENT COMMUNITY LAW DOES NOT RESTRICT THE FREEDOM OF EACH MEMBER STATE TO LAY DOWN TAX ARRANGEMENTS WHICH DIFFERENTIATE BETWEEN CERTAIN PRODUCTS ON THE BASIS OF OBJECTIVE CRITERIA . SUCH DIFFERENTIATION IS COMPATIBLE WITH COMMUNITY LAW IF IT PURSUES OBJECTIVES OF ECONOMIC POLICY WHICH ARE THEMSELVES COMPATIBLE WITH THE REQUIREMENTS OF THE TREATY AND ITS SECONDARY LEGISLATION AND IF THE DETAILED RULES ARE SUCH AS TO AVOID ANY FORM OF DISCRIMINATION , DIRECT OR INDIRECT , IN REGARD TO IMPORTS FROM OTHER MEMBER STATES OR ANY FORM OF PROTECTION OF COMPETING DOMESTIC PRODUCTS .

2.AS THERE ARE CHARACTERISTICS COMMON TO SPIRITS OF VARIOUS TYPES WHICH ARE SUFFICIENTLY MARKED FOR IT TO BE SAID THAT THEY ARE AT LEAST PARTLY OR POTENTIALLY IN COMPETITION , TAXATION OF THEM MUST NOT HAVE THE EFFECT OF PROTECTING DOMESTIC PRODUCTS . FOR THAT PURPOSE IT IS NECESSARY TO TAKE INTO CONSIDERATION THE POTENTIAL MARKET OF THE PRODUCTS IN QUESTION IN THE ABSENCE OF PROTECTIONIST MEASURES AND TO IGNORE COMPARISONS OF CONSUMPTION AND IMPORT FIGURES .

3.AS THE PRODUCTS CONCERNED ARE EITHER SIMILAR TO OR IN COMPETITION WITH ONE ANOTHER - WHICH BRINGS THEM WITHIN THE SCOPE OF THE SECOND PARAGRAPH OF ARTICLE 95 OF THE TREATY - A CRITERION FOR THE CHARGING OF HIGHER TAXATION , SUCH AS DESIGNATION OF ORIGIN OR PROVENANCE , WHICH BY DEFINITION CANNOT EVER BE FULFILLED BY DOMESTIC PRODUCTS IN THE ABSENCE OF RULES PROTECTING THEIR DESIGNATION OF ORIGIN OR PROVENANCE , CANNOT BE CONSIDERED TO BE COMPATIBLE WITH THE PROHIBITION OF DISCRIMINATION LAID DOWN IN THAT PROVISION .

SUCH A SYSTEM HAS THE EFFECT OF EXCLUDING DOMESTIC PRODUCTS IN ADVANCE FROM THE HEAVIEST TAXATION SINCE THEY WILL NEVER FULFIL THE CONDITIONS ON WHICH THE HIGHER RATE IS CHARGED AND IT IS ENTIRELY AT THE DISCRETION OF THE NATIONAL LEGISLATURE , IN CHOOSING NOT TO INTRODUCE A GENERAL SYSTEM APPLICABLE TO ALL SPIRITS , TO PERPETUATE THAT SITUATION INDEFINITELY REGARDLESS OF SIMILARITIES OR DIFFERENCES IN CONDITIONS OF PRODUCTION , QUALITY , PRICE OR COMPETITION BETWEEN NATIONAL PRODUCTS AND THOSE IMPORTED FROM OTHER MEMBER STATES .

4.MEMBER STATES HAVE THE RIGHT TO ADOPT , WHILST OBSERVING THE RELEVANT DIRECTIVES , A HIGHER RATE OF VAT ON LUXURY PRODUCTS AS OPPOSED TO DOMESTIC OR IMPORTED PRODUCTS NOT HAVING THAT QUALITY , PROVIDED , HOWEVER , THAT THE CRITERIA CHOSEN TO DETERMINE WHICH CATEGORY OF PRODUCTS IS TO BE MORE HEAVILY TAXED ARE NOT DISCRIMINATORY AS AGAINST IMPORTED PRODUCTS SIMILAR TO OR IN COMPETITION WITH DOMESTIC PRODUCTS IN THE MANNER CONTEMPLATED BY THE SECOND PARAGRAPH OF ARTICLE 95 OF THE TREATY .