CELEX: 62007CA0027
Language: en
Date: 2008-04-03 00:00:00
Title: Case C-27/07: Judgment of the Court (Fourth Chamber) of 3 April 2008 (reference for a preliminary ruling from the Conseil d'État (France)) — Banque Fédérative du Crédit Mutuel v Ministre de l'Économie, des Finances et de l'Industrie (Corporation tax — Directive 90/435/EEC — Taxable income of a parent company — Non deductibility of costs and expenses relating to a holding in a subsidiary — Fixing of costs at a flat rate — Ceiling of 5 % of the profits distributed by the subsidiary — Inclusion of tax credits)

24.5.2008   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 128/13
            
         Judgment of the Court (Fourth Chamber) of 3 April 2008 (reference for a preliminary ruling from the Conseil d'État (France)) — Banque Fédérative du Crédit Mutuel v Ministre de l'Économie, des Finances et de l'Industrie
   (Case C-27/07) (1)
   
   (Corporation tax - Directive 90/435/EEC - Taxable income of a parent company - Non deductibility of costs and expenses relating to a holding in a subsidiary - Fixing of costs at a flat rate - Ceiling of 5 % of the profits distributed by the subsidiary - Inclusion of tax credits)
   (2008/C 128/20)
   Language of the case: French
   Referring court
   Conseil d'État
   Parties to the main proceedings
   
      Applicant: Banque Fédérative du Crédit Mutuel
   
      Defendant: Ministre de l'Économie, des Finances et de l'Industrie
   Re:
   Reference for a preliminary ruling — Conseil d'État (France) — Interpretation of Articles 4, 5 and 7 of 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) — Add-back to the taxable income of the parent company of a fixed proportion of the costs and expenses, equal to 5 % of the income from its holdings in a subsidiary, including tax credits — Compatibility of that add back with the limit provided for in Article 4 of the directive — Need for the tax credit to be entirely set off against the tax payable by the parent company.
   Operative part of the judgment
   The concept of ‘profits distributed by the subsidiary’, within the meaning of the last sentence of Article 4(2) of 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, is to be interpreted as not precluding legislation of a Member State which includes in those profits tax credits which have been granted in order to offset a withholding tax levied by the Member State of the subsidiary in the hands of the parent company.
   
      (1)  OJ C 82, 14.4.2007.