Keywords

Summary



Keywords

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1 . TAX PROVISIONS - INTERNAL TAXATION - DIFFERENTIAL TAX ARRANGEMENTS - PERMISSIBILITY - CONDITIONS - PURSUIT OF AIMS CONSISTENT WITH COMMUNITY LAW - NO DISCRIMINATORY OR PROTECTIVE CHARACTER

( EEC TREATY, ART . 95 )

2 . TAX PROVISIONS - INTERNAL TAXATION - GRANTING OF TAX ADVANTAGES TO DOMESTIC PRODUCTS - PERMISSIBILITY - CONDITIONS - APPLICATION TO PRODUCTS IMPORTED FROM OTHER MEMBER STATES

( EEC TREATY, ART . 95 )

3 . TAX PROVISIONS - INTERNAL TAXATION - GRANTING OF TAX ADVANTAGES TO DOMESTIC PRODUCTS - APPLICATION TO PRODUCTS IMPORTED FROM OTHER MEMBER STATES - OBLIGATION TO PRESENT CERTIFICATES BASED ON CONTROL PROCEDURES CARRIED OUT BY THE AUTHORITIES OF THE MEMBER STATE OF EXPORTATION - PERMISSIBILITY - CONDITIONS

( EEC TREATY, ART . 95 )

Summary

1 . AT 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, EVEN PRODUCTS WHICH ARE SIMILAR WITHIN THE MEANING OF THE FIRST PARAGRAPH OF ARTICLE 95, ON THE BASIS OF OBJECTIVE CRITERIA, SUCH AS THE NATURE OF THE RAW MATERIALS USED OR THE PRODUCTION PROCESSES EMPLOYED . 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 . THE AIM OF OFFSETTING THE MORE SEVERE CONDITIONS UNDER WHICH CERTAIN PRODUCTS ARE PRODUCED, IN ORDER TO SUSTAIN THE OUTPUT OF QUALITY PRODUCTS WHICH ARE OF PARTICULAR ECONOMIC IMPORTANCE FOR CERTAIN REGIONS OF THE COMMUNITY MUST BE REGARDED AS COMPATIBLE WITH THE REQUIREMENTS OF COMMUNITY LAW .

2 . IN THE PRESENT STATE OF COMMUNITY LAW ARTICLE 95 OF THE EEC TREATY DOES NOT PROHIBIT MEMBER STATES, IN THE PURSUIT OF LEGITIMATE ECONOMIC OR SOCIAL AIMS, FROM GRANTING TAX ADVANTAGES, IN THE FORM OF EXEMPTIONS FROM OR REDUCTION OF TAXES, TO CERTAIN TYPES OF SPIRITS OR TO CERTAIN CLASSES OF PRODUCERS, PROVIDED THAT SUCH PREFERENTIAL SYSTEMS ARE EXTENDED WITHOUT DISCRIMINATION TO IMPORTED PRODUCTS CONFORMING TO THE SAME CONDITIONS AS PREFERRED DOMESTIC PRODUCTS . IN THAT REGARD, NATIONAL PROVISIONS WHICH COVER BOTH DOMESTIC AND IMPORTED PRODUCTS WITHOUT DISTINCTION CANNOT BE REGARDED AS CONTRARY TO COMMUNITY LAW MERELY BECAUSE THEY MIGHT LEND THEMSELVES TO DISCRIMINATORY APPLICATION, UNLESS IT IS PROVED THAT THEY ARE ACTUALLY APPLIED IN THAT WAY .

3 . ALTHOUGH A MEMBER STATE MAY NOT DENY A TAX ADVANTAGE PROVIDED BY ITS LEGISLATION TO PRODUCTS FROM ANOTHER MEMBER STATE ON THE GROUND THAT THEY CANNOT FULFIL CERTAIN CONDITIONS BY REASON OF THEIR GEOGRAPHICAL SITUATION OR OF THE LEGISLATION OF THE STATE OF PRODUCTION, IT IS NONE THE LESS NOT PROHIBITED FROM MAKING THE AVAILABILITY OF A TAX ADVANTAGE SUBJECT TO PROOF THAT THE CONDITIONS FOR GRANTING IT HAVE BEEN FULFILLED, WITH THE PROVISO THAT THE EVIDENTIARY REQUIREMENTS MAY NOT BE STRICTER IN RESPECT OF IMPORTED PRODUCTS THAN THEY ARE FOR SIMILAR NATIONAL PRODUCTS OR DISPROPORTIONATE TO THE GOAL PURSUED, NAMELY TO ELIMINATE THE RISK OF FRAUD .

BY WAY OF EVIDENCE IT IS LEGITIMATE TO CALL FOR PRODUCTION OF A CERTIFICATE ISSUED BY THE AUTHORITIES OF THE MEMBER STATE FROM WHICH THE PRODUCTS ORIGINATE . SINCE A CERTIFICATE SUCH AS THAT CAN ONLY BE ISSUED ON THE BASIS OF CONTROL PROCEDURES, THE REQUIREMENT OF CONTROLS AFFORDING GUARANTEES EQUIVALENT TO THOSE PROVIDED UNDER DOMESTIC LEGISLATION MAY ALSO BE IMPOSED ON PRODUCTS IMPORTED FROM OTHER MEMBER STATES .

IN ORDER TO ENSURE OBSERVANCE OF THE PRINCIPLE OF PROPORTIONALITY, HOWEVER, THE EXPORTING MEMBER STATE MUST BE LEFT FREE TO CHOOSE CONTROL METHODS AND TO DESIGNATE THE AUTHORITY RESPONSIBLE FOR THE CONTROLS, BUT THE RECOGNITION OF EQUIVALENCE MUST NOT BE MADE DEPENDENT ON THE PRIOR NEGOTIATION OF AN AGREEMENT BETWEEN THE NATIONAL AUTHORITIES CONCERNED .