Keywords

Summary



Keywords

1. Tax provisions - Harmonisation of laws - Indirect taxes on the raising of capital - Taxation for the purposes of Directive 69/335 - Meaning - Charges for registering an increase in the share capital of a capital company which contribute to the State budget - Included

(Council Directive 69/335)

2. Tax provisions - Harmonisation of laws - Indirect taxes on the raising of capital - Entry of an increase in the share capital of a capital company in a commercial register - Essential formality - Levying of registration charges - Not permissible

(Council Directive 69/335, Art. 10(c))

3. Tax provisions - Harmonisation of laws - Indirect taxes on the raising of capital - Entry of an increase in the share capital of a capital company in a commercial register - Duties paid by way of fees or dues - Meaning - Charges in direct proportion to the share capital raised - Excluded - Ceiling on charges - Element of solidarity between large and small companies - Effect

(Council Directive 69/335, Art. 12(1)(e))

Summary

1. Directive 69/355 concerning indirect taxes on the raising of capital must, in the light of its aims, in particular the abolition of indirect taxes having the same characteristics as capital duty, be interpreted as meaning that charges which are levied for entering an increase in a company's share capital in a commercial register and paid to the State in order to subsidise public expenditure constitute a tax within the meaning of the Directive.

( see paras 24-26 )

2. Where they constitute a tax within the meaning of Directive 69/335 concerning indirect taxes on the raising of capital, charges for recording an increase in the share capital of a company in a commercial register are in principle prohibited by Article 10(c) of that directive in so far as, its being compulsory to record any increase in a capital company's share capital in the commercial register, the recording of that increase constitutes an essential formality connected with the legal form of the company and it is necessary for the carrying on of the company's business.

( see paras 30-31 )

3. Article 12(1)(e) of Directive 69/335 concerning indirect taxes on the raising of capital is to interpreted as meaning that charges for recording an increase in the share capital of a capital company in a commercial register, which increase without upper limit in direct proportion to the nominal capital subscribed and are not calculated on the basis of the cost of the service rendered are not duties paid by way of fees or dues.

The existence of a maximum which those charges cannot exceed is not sufficient to make them duties paid by way of fees or dues if that maximum is not established reasonably by reference to the cost of the service in respect of which the charges are levied. Furthermore, a Member State cannot, without making the charges in question cease to be duties paid by way of fees or dues, introduce into the scale of charges payable for a service rendered an element of solidarity between large and small companies, by establishing, for one and the same service, a higher charge for capital companies with significant share capital than for those with less share capital, where that difference in the charge bears no relation to the cost of the service.

( see para. 43 and operative part )