CELEX: C2007/082/05
Language: en
Date: 2007-04-14 00:00:00
Title: Case C-345/04: Judgment of the Court (Third Chamber) of 15 February 2007 (reference for a preliminary ruling from the Bundesfinanzhof (Germany) — Centro Equestre da Lezíria Grande Lda v Bundesamt für Finanzen (Freedom to provide services — Tax legislation — Corporation tax — Equestrian presentations and lessons organised in a Member State by a company established in another Member State — Deduction of operating expenses — Conditions — Direct economic connection to income received in the State in which the activity is pursued)

14.4.2007   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 82/3
            
         Judgment of the Court (Third Chamber) of 15 February 2007 (reference for a preliminary ruling from the Bundesfinanzhof (Germany) — Centro Equestre da Lezíria Grande Lda v Bundesamt für Finanzen
   (Case C-345/04) (1)
   
   (Freedom to provide services - Tax legislation - Corporation tax - Equestrian presentations and lessons organised in a Member State by a company established in another Member State - Deduction of operating expenses - Conditions - Direct economic connection to income received in the State in which the activity is pursued)
   (2007/C 82/05)
   Language of the case: German
   Referring court
   Bundesfinanzhof (Germany)
   Parties to the main proceedings
   
      Applicant: Centro Equestre da Lezíria Grande Lda
   
      Defendant: Bundesamt für Finanzen
   Re:
   Reference for a preliminary ruling — Bundesfinanzhof — Whether national legislation relating to income tax payable by non-residents which provides that tax is to be repaid where operating expenses which have a direct economic connection to income are higher than half of the income is compatible with Article 59 of the EC Treaty (now, after amendment, Article 49 EC)
   Operative part of the judgment
   Article 59 of the EC Treaty (now, after amendment, Article 49 EC) does not preclude national legislation such as that at issue in the main proceedings in so far as that legislation makes repayment of corporation tax deducted at source on the income of a taxpayer with restricted tax liability subject to the condition that the operating expenses in respect of which a deduction is claimed for that purpose by that taxpayer have a direct economic connection to the income received from activities pursued in the Member State concerned, on condition that all the costs that are inextricably linked to that activity are considered to have such a direct connection, irrespective of the place and time at which those costs were incurred. By contrast, that article precludes such national legislation in so far as it makes repayment of that tax to that taxpayer subject to the condition that those same operating expenses exceed half of that income.
   
      (1)  OJ C 273, 6.11.2004.