Judgment of the Court (Fifth Chamber) of 25 September 2003 in Case C-58/01 (Reference for a preliminary ruling from the Special Commissioners of Income Tax): Océ van der Grinten NV v Commissioners of Inland Revenue, (Directive 90/435/EEC — Corporation tax — Parent companies and subsidiaries of different Member States — Concept of withholding tax)
Date: 2003-11-15
Institutions: Court of Justice
Subjects: corporation tax, interpretation of the law, parent company, subsidiary, tax system

15.11.2003

EN

Official Journal of the European Union

C 275/7

JUDGMENT OF THE COURT

(Fifth Chamber)

of 25 September 2003

in Case C-58/01 (Reference for a preliminary ruling from
the Special Commissioners of Income Tax): Océ van der
Grinten NV v Commissioners of Inland Revenue (1),

(Directive 90/435/EEC — Corporation tax — Parent com-
panies and subsidiaries of different Member States —
Concept of withholding tax)

(2003/C 275/12)

(Language of the case: English)

In Case C-58/01: Reference to the Court under Article 234 EC
by the Special Commissioners of
Income Tax (United
Kingdom) for a preliminary ruling in the proceedings pending
before them between Océ van der Grinten NV and Com-
missioners of
Inland Revenue, on the interpretation of
Article 5(1) of Council Directive 90/435/EEC of 23 July 1990
on the common system of taxation applicable in the case of
parent companies and subsidiaries of different Member States
(OJ 1990 L 225, p. 6, corrigendum at OJ 1991 L 23, p. 35)
and the interpretation and validity of Article 7(2) of that
directive, the Court (Fifth Chamber), composed of: M. Wathelet
(Rapporteur), President of the Chamber, D.A.O. Edward, A. La
Pergola, P. Jann and A. Rosas, Judges; A. Tizzano, Advocate
General; L. Hewlett, Principal Administrator, for the Registrar,
has given a judgment on 25 September 2003, in which it has
ruled:

1.

In so far as taxation such as the 5 % charge envisaged by the
double taxation convention at issue in the main proceedings is
imposed on the dividends paid by a subsidiary resident in the
United Kingdom to its parent company resident in another
Member State,
it amounts to a withholding tax on profits
which a subsidiary distributes to its parent company within the
meaning of Article 5(1) of Council Directive 90/435/EEC of
23 July 1990 on the common system of taxation applicable in
the case of parent companies and subsidiaries of different
Member States. On the other hand, such taxation does not
amount to a withholding tax prohibited by Article 5(1) of the
Directive in so far as it is imposed on the tax credit to which
that distribution of dividends confers entitlement in the United
Kingdom.

2. Article 7(2) of Directive 90/435 is to be interpreted as
allowing taxation such as the 5% charge envisaged by the
double taxation convention at issue in the main proceedings
even though that charge, in so far as it applies to dividends
paid by the subsidiary to its parent company, amounts to a
withholding tax within the meaning of Article 5(1) of the
Directive.

3.

Examination of the third question has revealed no formal or
procedural defects such as to affect the validity of Article 7(2)
of the Directive.

(1) OJ C 134 of 5.5.2001.

JUDGMENT OF THE COURT

of 30 September 2003

in Case C-76/01 P: Comité des industries du coton et des
fibres connexes de l’Union européenne (Eurocoton) and
Others (1)

(Appeal — Dumping — Failure by the Council to adopt a
proposal for a regulation imposing definitive anti-dumping
duties — Lack of simple majority necessary for the adoption
of the regulation — Expiry of the time-limit for the anti-
dumping investigation — Definition of a reviewable act —
Obligation to state reasons)

(2003/C 275/13)

(Language of the case: English)

In Case C-76/01 P, Comité des industries du coton et des fibres
connexes de l’Union européenne (Eurocoton), established in
Brussels (Belgium), Ettlin Gesellschaft für Spinnerei und Webe-
rei AG, established in Ettlingen (Germany), Textil Hof Weberei
GmbH & Co. KG, established in Hof (Germany), H. Hecking
Söhne GmbH & Co., established in Stadtlohn (Germany),
Spinnweberei Uhingen GmbH,
established in Uhingen
(Germany), F. A. Kümpers GmbH & Co., established in Rheine
(Germany), Tenthorey SA, established in Éloyes (France), Les
tissages des héritiers de G. Perrin — Groupe Alain Thirion
(HPG–GAT Tissages), established in Cornimont (France), Étab-
lissements des fils de Victor Perrin SARL, established in