CELEX: C2007/170/14
Language: en
Date: 2007-07-21 00:00:00
Title: Case C-102/05: Order of the Court (Fourth Chamber) of 10 May 2007 (reference for a preliminary ruling from the Regeringsrätten — Sweden) — Skatteverket v A and B (First subparagraph of Article 104(3) of the Rules of Procedure — Free movement of capital — Freedom of establishment — Taxation — Dividends paid in respect of shares distributed by a close company — Wage rules — Taxation of those dividends as income from assets — Calculation of a flat-rate yield — Percentage of capital invested and fraction of salaries — Branch established in a third country — Failure to take into account employees' wages at this branch)

21.7.2007   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 170/8
            
         Order of the Court (Fourth Chamber) of 10 May 2007 (reference for a preliminary ruling from the Regeringsrätten — Sweden) — Skatteverket v A and B
   (Case C-102/05) (1)
   
   (First subparagraph of Article 104(3) of the Rules of Procedure - Free movement of capital - Freedom of establishment - Taxation - Dividends paid in respect of shares distributed by a ‘close company’ - ‘Wage rules’ - Taxation of those dividends as income from assets - Calculation of a flat-rate yield - Percentage of capital invested and fraction of salaries - Branch established in a third country - Failure to take into account employees' wages at this branch)
   (2007/C 170/14)
   Language of the case: Swedish
   Referring court
   Regeringsrätten
   Parties
   
      Applicant: Skatteverket
   
      Defendant: A and B
   Re:
   Reference for a preliminary ruling — Regeringsrätten — Interpretation of Articles 56 EC and 58 EC — Taxation of dividends paid by small public limited companies — Tax allowance corresponding to a notional return on capital invested which takes account of salaries paid by the company and its subsidiaries or branches in so far as those salaries are taxable in Sweden — Taking into account of salaries paid by a branch in a non-member State
   Operative part of the order
   A national measure which, in the context of taxation on share dividends as income from assets up to the limits of a flat-rate yield calculated by applying a specific percentage to a base including, besides the capital invested by the shareholder, a fraction of the salaries paid to employees of the company issuing the dividends, does not permit salaries of workers employed in a branch of this company, or by one of its subsidiaries to be taken into account, in a third country, seriously restricts freedom of establishment within the meaning of Article 43 EC et seq. Those articles cannot be pleaded in circumstances involving the establishment of a company of a Member State in a third country.
   
      (1)  OJ C 106, 30.4.2005.