CELEX: 62011CA0168
Language: en
Date: 2013-02-28 00:00:00
Title: Case C-168/11: Judgment of the Court (Second Chamber) of 28 February 2013 (request for a preliminary ruling from the Bundesfinanzhof — Germany) — Manfred Beker, Christa Beker v Finanzamt Heilbronn (Free movement of capital — Income tax — Income from capital — Convention for the avoidance of double taxation — Dividends distributed by companies established in Member States and third countries — Calculation of the maximum amount of foreign withholding tax deductible against national income tax — Failure to take account of personal and lifestyle costs — Justification)

20.4.2013   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 114/9
            
         Judgment of the Court (Second Chamber) of 28 February 2013 (request for a preliminary ruling from the Bundesfinanzhof — Germany) — Manfred Beker, Christa Beker v Finanzamt Heilbronn
   (Case C-168/11) (1)
   
   (Free movement of capital - Income tax - Income from capital - Convention for the avoidance of double taxation - Dividends distributed by companies established in Member States and third countries - Calculation of the maximum amount of foreign withholding tax deductible against national income tax - Failure to take account of personal and lifestyle costs - Justification)
   2013/C 114/11
   Language of the case: German
   
      Referring court
   
   Bundesfinanzhof
   
      Parties to the main proceedings
   
   
      Applicants: Manfred Beker, Christa Beker
   
      Defendant: Finanzamt Heilbronn
   
      Re:
   
   Request for a preliminary ruling — Bundesfinanzhof — Interpretation of Article 56 EC — National legislation on income tax on natural persons which allows deduction of income tax paid abroad only with regard to the share of national income tax charged on the foreign revenue — Method of determining that share of national income tax resulting in deductible expenses and extraordinary costs also being allocated proportionately to the foreign income, and thus resulting in a corresponding reduction of the maximum amount deductible with regard to taxes paid abroad
   
      Operative part of the judgment
   
   Article 63 TFEU must be interpreted as precluding rules of a Member State under which, in the context of a system aimed at limiting double taxation, where persons subject to unlimited tax liability pay on foreign income, in the State where that income originates, a tax equivalent to the income tax levied by the said Member State, the offsetting of that foreign tax against the amount of income tax levied in the said Member State is carried out by multiplying the amount of the tax due in respect of taxable income in the same Member State, including foreign income, by the proportion that that foreign income bears to total income, that latter sum not taking into account special expenditure or extraordinary costs such as costs relating to lifestyle or to personal and family circumstances.
   
      (1)  OJ C 211, 16.7.2011.