Judgment of the Court (Grand Chamber) of 12 July 2005 in Case C-403/03: Reference for a preliminary ruling from the Bundesfinanzhof in Egon Schempp v Finanzamt München V (Citizenship of the Union — Articles 12 EC and 18 EC — Income tax — Deductibility from taxable income of maintenance paid by a taxpayer resident in Germany to his former spouse resident in Austria — Proof of taxation of the maintenance payments in that Member State)
Date: 2005-09-03
Institutions: Court of Justice
Subjects: Austria, Germany, divorced person, interpretation of the law, maintenance obligation, tax system

C 217/12

EN

Official Journal of the European Union

3.9.2005

2. Orders the Federal Republic of Germany to pay the costs.

would be entitled to do so if his former spouse were resident in
Germany.

(1) OJ C 264 of 01.11.2003.

(1) OJ C 304 of 13.12.2003.

JUDGMENT OF THE COURT

JUDGMENT OF THE COURT

(Grand Chamber)

of 12 July 2005

(Second Chamber)

of 14 July 2005

in Case C-403/03: Reference for a preliminary ruling from
in Egon Schempp v Finanzamt
the Bundesfinanzhof

München V (1)

in Case C-433/03: Commission of the European Commu-
nities v Federal Republic of Germany (1)

(Citizenship of the Union — Articles 12 EC and 18 EC —
Income tax — Deductibility from taxable income of mainte-
nance paid by a taxpayer resident in Germany to his former
spouse resident in Austria — Proof of taxation of the mainte-
nance payments in that Member State)

(Failure of a Member State to fulfil its obligations — Nego-
tiation, conclusion, ratification and implementation of bilat-
eral agreements by a Member State — Transport of goods or
passengers by inland waterway — External competence of the
Community — Article 10 EC — Regulations (EEC) No 3921/
91 and (EC) No 1356/96)

(2005/C 217/22)

(2005/C 217/23)

(Language of the case: German)

(Language of the case: German)

received at

In Case C-403/03: reference for a preliminary ruling under
Article 234 EC from the Bundesfinanzhof (Germany), made by
the Court on 29
decision of 22 July 2003,
September 2003, in the proceedings between Egon Schempp
and Finanzamt München V — the Court (Grand Chamber),
composed of V. Skouris, President, P. Jann, C.W.A. Timmer-
mans and A. Rosas, Presidents of Chambers, C. Gulmann, J.-P.
Puissochet, A. La Pergola, R. Schintgen, N. Colneric, J. Klučka,
U. Lõhmus, E. Levits and A. Ó Caoimh (Rapporteur), Judges;
L.A. Geelhoed, Advocate General; R. Grass, Registrar, gave a
judgment on 12 July 2005, in which it ruled:

In Case C-433/03, Commission of the European Communities
(Agents: C. Schmidt, W. Wils and A. Manville) v Federal
Republic of Germany (Agent: W.-D. Plessing, and G. Schohe,
Lawyer) — action under Article 226 EC for failure to fulfil obli-
gations, brought on 10 October 2003 — the Court (Second
Chamber), composed of C.W.A. Timmermans, President of the
Chamber, R. Silva de Lapuerta (Rapporteur), C. Gulmann, J.
Makarczyk and P. Kūris, Judges; A. Tizzano, Advocate General;
R. Grass, Registrar, gave a judgment on 14 July 2005, in which
it:

The first paragraph of Article 12 EC and Article 18(1) EC must be
interpreted as not precluding a taxpayer resident in Germany from
being unable, under national legislation such as that at issue in the
main proceedings, to deduct from his taxable income in that Member
State the maintenance paid to his former spouse resident in another
Member State in which the maintenance is not taxable, where he

1. Declares that, by ratifying and implementing:

— the agreement between the Government of the Federal Republic
of Germany and the Government of Romania on inland
waterway transport, signed in Bonn on 22 October 1991,