CELEX: 62006CO0415
Language: en
Date: 2007-11-06 00:00:00
Title: Order of the Court (Eighth Chamber) of 6 November 2007.#Stahlwerk Ergste Westig GmbH v Finanzamt Düsseldorf-Mettmann.#Reference for a preliminary ruling: Bundesfinanzhof - Germany.#First subparagraph of Article 104(3) of the Rules of Procedure - Answer clearly able to be deduced from case-law - Free movement of capital - Taxation on income - Company having permanent establishments in a non-Member State - Account taken of losses incurred by those establishments.#Case C-415/06.

Order of the Court (Eighth Chamber) of 6 November 2007 – Stahlwerk Ergste Westig
      (Case C‑415/06)
      First subparagraph of Article 104(3) of the Rules of Procedure – Answer clearly able to be deduced from case-law – Free movement of capital – Taxation on income – Company having permanent establishments in a non-Member State – Account taken of losses incurred by those establishments
      1.                     Preliminary rulings – Answer clearly able to be deduced from case-law – Application of Article 104(3) of the Rules of Procedure
            (Rules of Procedure of the Court, Art. 104(3)) (see paras 9-10)
      2.                     Freedom of movement for persons – Freedom of establishment – Provisions of the Treaty – Scope (Arts 43 EC and 56 EC) (see
            paras 14, 16, 18-19 and operative part)
      Re: 
      
         Preliminary ruling – Bundesfinanzhof – Interpretation of Articles 56 EC, 57(1) EC and 58 EC – Deduction from the taxable profits
                  of a German company of losses resulting from the activity of a permanent establishment in a non-member country – Deduction
                  refused on the basis of a bilateral double taxation convention concluded with that non-member country.
               
            Operative part: 
      A national system of taxation under which a company having its head office in a Member State, when determining its results,
         cannot deduct losses incurred by an establishment in a non-Member State fundamentally affects the exercise of the freedom
         of establishment within the meaning of Articles 43 EC to 48 EC. Those provisions cannot be relied upon in a situation involving
         such an establishment in a non-Member State.