Case C-554/07: Action brought on 11 December 2007 — Commission of the European Communities v Ireland
Date: 2007-12-11
Institutions: Court of Justice
Subjects: European Commission, Ireland, VAT, action for failure to fulfil an obligation, local government, national implementing measure, public authorities, tax system

C 51/36

EN

Official Journal of the European Union

23.2.2008

Pleas in law and main arguments

The obligation to carry out the classification of special protec-
tion areas for birds (SPAs) was imposed on the Republic of
Poland at the time of its accession to the European Union.

In December 2004 an ornithological inventory was published
which detailed the situation of birds of European significance in
Poland (IBA 2004) and designated, on the basis of ornitholo-
gical criteria, 140 areas of crucial importance for the conserva-
tion of birds.

Of the areas included on the IBA 2004 list, 15 were not classi-
fied by the Republic of Poland as SPAs, notwithstanding the fact
that
the Polish authorities failed to produce any scientific
evidence to justify that failure to designate them.

Furthermore, the areas of 8 SPAs are much smaller than their
equivalents on the IBA 2004 inventory, with the result that
outside their limits there are areas which, according to IBA
2004, would appear to be most suitable for the conservation of
bird species.

comply with its obligations under Articles 2, 9 and 13 of
Council Directive 2006/112/EC of 28 November 2006 on
the common system of value added tax (1);

— order Ireland to pay the costs.

Pleas in law and main arguments

In Ireland, the State and local authorities are treated as taxable
persons only in so far as a specific order to that effect has been
made by the Minister for Finance. In the Commission's view
that situation is contrary to the scheme laid down in Article 13
of the VAT directive in several respects. First, no provision is
made for the taxation of public bodies where they act other
than in their capacity as public authorities. Secondly, no general
provision is made for the taxation of public bodies where they
act in their capacity as public authorities but engage in an
economic activity whose non-taxation would result in a signifi-
cant distortion of competition. The taxation of public bodies is
wholly at the discretion of the Minister for Finance; no criteria
for his decision are contained in the relevant provisions. Thirdly,
no provision is made for taxation of the activities listed in
Annex I to the VAT directive.

In addition, in September 2007 the Polish authorities, without
notifying the Commission, reduced the areas of 5 designated
SPAs in a manner impacting significantly on bird conservation.

(1) OJ L 347, p. 1.

(1) OJ 1979 L 103, p. 1.

Action brought on 11 December 2007 — Commission of
the European Communities v Ireland

(Case C-554/07)

(2008/C 51/59)

Language of the case: English

Parties

Reference for a preliminary ruling from the High Court of
Justice (Queen's Bench Division) Administrative Court
(United Kingdom) made on 17 December 2007 — The
Queen on the application of S.P.C.M. SA, C.H. Erbslöh KG,
Lake
Limited, Hercules
and Minerals
Incorporated v Secretary of State for Environment, Food
and Rural Affairs

Chemicals

(Case C-558/07)

(2008/C 51/60)

Language of the case: English

Applicant: Commission of the European Communities (repre-
sented by: R. Lyal and M. Afonso, Agents)

Referring court

Defendant: Ireland

High Court of Justice (Queen's Bench Division) Administrative
Court

The applicant claims that the Court should:

Parties to the main proceedings

— declare that by failing to transpose correctly into Irish legis-
lation Article 13 of Directive 2006/112 (including Annex I
to the directive) and consequently by excluding from the
scope of the tax all economic activities in which the State,
local authorities and other bodies governed by public law
engage, with certain limited exceptions, Ireland has failed to

Applicants: S.P.C.M. SA, C.H. Erbslöh KG, Lake Chemicals and
Minerals Limited, Hercules Incorporated

Defendant: Secretary of State for Environment, Food and Rural
Affairs