Case C-504/16: Request for a preliminary ruling from the Finanzgericht Köln (Germany) lodged on 23 September 2016 — Deister Holding AG, as full legal successor to Traxx Investments N.V. v Bundeszentralamt für Steuern
Date: 2016-09-23
Institutions: Court of Justice
Subjects: parent company, residence, tax exemption, tax law, tax on investment income








C_2016475EN.01001102.xml










19.12.2016   


EN


Official Journal of the European Union


C 475/11





Request for a preliminary ruling from the Finanzgericht Köln (Germany) lodged on 23 September 2016 — Deister Holding AG, as full legal successor to Traxx Investments N.V. v Bundeszentralamt für Steuern
(Case C-504/16)
(2016/C 475/17)
Language of the case: German

Referring court

Finanzgericht Köln

Parties to the main proceedings


Applicant: Deister Holding AG, as full legal successor to Traxx Investments N.V.

Defendant: Bundeszentralamt für Steuern

Questions referred







1.


Does Article 43 in conjunction with Article 48 EC (now Article 49 in conjunction with Article 54 TFEU) preclude national tax legislation such as that at issue in the main proceedings which denies relief from investment income tax on distributions of profits made to a non-resident parent company whose sole shareholder is resident within the country,
to the extent that persons have holdings in it who would not be entitled to the refund or exemption if they earned the income directly, and






(1)


there are no economic or other substantial reasons for the involvement of the non-resident parent company, or










(2)


the non-resident parent company does not earn more than 10 % of its entire gross income for the financial year in question from its own economic activity (there being no such activity, inter alia, if the foreign company earns its gross income from the management of assets), or










(3)


the non-resident parent company does not take part in general economic commerce with a business establishment suitably equipped for its business purpose,




whereas resident parent companies are granted relief from investment income tax without regard to the aforementioned requirements?










2.


Does Article 5(1) in conjunction with Article 1(2) of Directive 90/435/EEC (1) preclude national tax legislation such as that at issue in the main proceedings which denies relief from investment income tax on distributions of profits made to a non-resident parent company whose sole shareholder is resident within the country,
to the extent that persons have holdings in it who would not be entitled to the refund or exemption if they directly earned the income, and






(1)


there are no economic or other substantial reasons for the involvement of the non-resident parent company, or










(2)


the non-resident parent company does not earn more than 10 % of its entire gross income for the financial year in question from its own economic activity (there being no such activity, inter alia, if the foreign company earns its gross income from the management of assets), or










(3)


the non-resident parent company does not take part in general economic commerce with a business establishment suitably equipped for its business purpose,




whereas resident parent companies are granted relief from investment income tax without regard to the aforementioned requirements?






(1)  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).