CELEX: C1999/366/14
Language: en
Date: 1999-12-18 00:00:00
Title: Judgment of the Court of 21 September 1999 in Case C-307/97 (reference for a preliminary ruling from the Finanzgericht Köln): Compagnie de Saint-Gobain, Zweigniederlassung Deutschland v Finanzamt Aachen-Innenstadt (Freedom of establishment - Taxes on companies' income - Tax concessions)

18.12.1999              EN                       Official Journal of the European Communities                                            C 366/9
Articles 85, 86 and 90 of the EC Treaty (now Articles 81 EC,                                  JUDGMENT OF THE COURT
82 EC and 86 EC) — the Court, composed of: G.C. Rodrı́guez
Iglesias, President, J.-P. Puissochet, G. Hirsch and P. Jann, Presi-                              of 21 September 1999
dents of the Chambers, J.C. Moitinho de Almeida (Rapporteur),
C. Gulmann, J.L. Murray, D.A.O. Edward, H. Ragnemalm,                       in Case C-307/97 (reference for a preliminary ruling from
L. Sevón and M. Wathelet, Judges; F.G. Jacobs, Advocate Gen-               the Finanzgericht Köln): Compagnie de Saint-Gobain,
eral; D. Louterman-Hubeau, Principal Administrator, for the                 Zweigniederlassung Deutschland v Finanzamt Aachen-
Registrar, has given a judgment on 21 September 1999, in                                                 Innenstadt (1)
which it has ruled:
                                                                            (Freedom of establishment — Taxes on companies’ income
                                                                                                     — Tax concessions)
1. A decision taken by organisations representing employers and                                        (1999/C 366/14)
    workers in a given sector, in the context of a collective agreement,
    to set up in that sector a single pension fund responsible for
    managing a supplementary pension scheme and to request the                                  (Language of the case: German)
    public authorities to make affiliation to that fund compulsory for
    all workers in that sector does not fall within the scope of
    Article 85 of the EC Treaty (now Article 81 EC).                        (Provisional translation; the definitive translation will be published
                                                                                                in the European Court Reports)
                                                                            In Case C-307/97: reference to the Court under Article 177 of
                                                                            the EC Treaty (now Article 234 EC) from the Finanzgericht
2. Article 3(g) of the EC Treaty (now, after amendment,                     Köln, Germany, for a preliminary ruling in the proceedings
    Article 3(1)(g) EC), Article 5 of the EC Treaty (now Article 10         pending before that court between Compagnie de Saint-
    EC) and Article 85 of the Treaty do not prohibit a decision by          Gobain, Zweigniederlassung Deutschland and Finanzamt
    the public authorities to make affiliation to a sectoral pension        Aachen-Innenstadt — on the interpretation of Article 52 of
    fund compulsory at the request of organisations representing            the EC Treaty (now, after amendment, Article 43 EC) and
    employers and workers in a given sector.                                Article 58 of the EC Treaty (now Article 48 EC) — the Court,
                                                                            composed of: G.C. Rodrı́guez Iglesias, President, P.J.G. Kapteyn
                                                                            and G. Hirsch, Presidents of the Chambers, J.C. Moitinho de
                                                                            Almeida, C. Gulmann, J.L. Murray, D.A.O. Edward, H. Ragne-
                                                                            malm, L. Sevón, M. Wathelet (Rapporteur) and R. Schintgen,
3. A pension fund charged with the management of a supplementary
                                                                            Judges; J. Mischo, Advocate General; L. Hewlett, Administrator,
    pension scheme set up by a collective agreement concluded
                                                                            for the Registrar, has given a judgment on 21 September
    between organisations representing employers and workers in a
                                                                            1999, in which it has ruled:
    given sector, to which affiliation has been made compulsory by
    the public authorities for all workers in that sector, is an
    undertaking within the meaning of Article 85 et seq. of the             Article 52 of the EC Treaty (now, after amendment, Article 43 EC)
    Treaty.                                                                 and Article 58 of the EC Treaty (now Article 48 EC) preclude the
                                                                            exclusion of a permanent establishment in Germany of a company
                                                                            limited by shares having its seat in another Member State from
                                                                            enjoyment, on the same conditions as those applicable to companies
                                                                            limited by shares having their seat in Germany, of tax concessions
4. Articles 86 and 90 of the EC Treaty (now Articles 82 EC and              taking the form of:
    86 EC) do not preclude the public authorities from conferring on
    a pension fund the exclusive right to manage a supplementary            — an exemption from corporation tax for dividends received from
    pension scheme in a given sector.                                           companies established in non-member countries (corporation tax
                                                                                relief for international groups), provided for by a treaty for the
                                                                                avoidance of double taxation concluded with a non-member
                                                                                country,
                                                                            — the crediting, against German corporation tax, of the corporation
                                                                                tax levied in a State other than the Federal Republic of Germany
(1) OJ No C 228 of 26.7.1997.                                                   on the profits of a subsidiary established there, provided for by
                                                                                German legislation, and
                                                                            — an exemption from capital tax for shareholdings in companies
                                                                                established in non-member countries (capital tax relief for
                                                                                international groups), also provided for by German legislation.
                                                                            (1) OJ No C 318 of 18.10.1997.