Case C-589/14: Judgment of the Court (Sixth Chamber) of 29 October 2015 — European Commission v Kingdom of Belgium (Failure of a Member State to fulfil obligations — Freedom to provide services — Free movement of capital — Interest payable on unsecured debts — Withholding tax — Investment companies in receipt of such interest established in Belgium — Investment companies in receipt of such interest established in another Member State or in a third State party to the EEA Agreement — Difference in treatment — Burden of proof — Interest payable on debts backed by Belgian securities — Imposition of such interest where the securities are deposited or registered in an account in a financial institution established in another Member State of the European Union or a third State party to the EEA Agreement — Exemption where the securities are deposited or registered in an account in a financial institution established in Belgium)
Date: 2015-10-29
Institutions: Court of Justice
Subjects: European Economic Area, debt, free movement of capital, freedom to provide services, interest, investment company, nationality of legal persons, securities, tax exemption, tax on income








C_2015429EN.01000602.xml










21.12.2015   


EN


Official Journal of the European Union


C 429/6





Judgment of the Court (Sixth Chamber) of 29 October 2015 — European Commission v Kingdom of Belgium
(Case C-589/14) (1)

((Failure of a Member State to fulfil obligations - Freedom to provide services - Free movement of capital - Interest payable on unsecured debts - Withholding tax - Investment companies in receipt of such interest established in Belgium - Investment companies in receipt of such interest established in another Member State or in a third State party to the EEA Agreement - Difference in treatment - Burden of proof - Interest payable on debts backed by Belgian securities - Imposition of such interest where the securities are deposited or registered in an account in a financial institution established in another Member State of the European Union or a third State party to the EEA Agreement - Exemption where the securities are deposited or registered in an account in a financial institution established in Belgium))
(2015/C 429/08)
Language of the case: French

Parties


Applicant: European Commission (represented by: J.-F. Brakeland and W. Roels, acting as Agents)

Defendant: Kingdom of Belgium (represented by: J.-C. Halleux and M. Jacobs, acting as Agents)

Operative part of the judgment

The Court:






1)


Declares that, by maintaining in force provisions according to which interest payable on debts backed by Belgian securities are subject to the payment of withholding tax when the securities are deposited or registered in an account in a financial institution established in another Member State of the European Union other than the Kingdom of Belgium or in a third State party to the EEA Agreement, of 2 May 1992, although that interest in exempted from withholding tax where those securities are deposited or registered in an account in a financial institution established in Belgium, the Kingdom of Belgium failed to fulfil its obligations under Article 56 TFEU and Article 36 of the Agreement on the European Economic Area.










2)


Dismisses the action as to the remainder.










3)


Orders the European Commission and the Kingdom of Belgium to bear their own costs.






(1)  OJ C 73, 2.3.2015.