Derrick Guy Edmund Hurd v Kenneth Jones (Her Majesty's Inspector of Taxes).
Date: 1986-01-15
1 BY A DECISION OF 14 FEBRUARY 1984 , WHICH WAS RECEIVED AT THE COURT ON 17 FEBRUARY 1984 , THE COMMISSIONERS FOR THE SPECIAL PURPOSES OF THE INCOME TAX ACTS ( HEREINAFTER REFERRED TO AS ' THE SPECIAL COMMISSIONERS ' ) REFERRED TO THE COURT FOR A PRELIMINARY RULING UNDER ARTICLE 177 OF THE EEC TREATY VARIOUS QUESTIONS ON THE INTERPRETATION OF CERTAIN PROVISIONS AND GENERAL PRINCIPLES OF COMMUNITY LAW , AND IN PARTICULAR ARTICLE 3 OF THE ACT CONCERNING THE CONDITIONS OF ACCESSION AND THE ADJUSTMENTS TO THE TREATIES ( HEREINAFTER REFERRED TO AS ' THE ACT OF ACCESSION ' ), ANNEXED TO THE TREATY CONCERNING THE ACCESSION OF THE KINGDOM OF DENMARK , IRELAND AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND TO THE EUROPEAN ECONOMIC COMMUNITY AND TO THE EUROPEAN ATOMIC ENERGY COMMUNITY ( HEREINAFTER REFERRED TO AS THE ' TREATY OF ACCESSION ' ), AND ARTICLES 5 AND 7 OF THE EEC TREATY . THE PURPOSE OF THOSE QUESTIONS IS TO DETERMINE WHETHER DOMESTIC INCOME TAX MAY BE LEVIED ON A SPECIFIC PART OF THE EMOLUMENTS PAID TO TEACHING STAFF OF THE EUROPEAN SCHOOLS .
14 QUESTION 1 ( A ) IS ESSENTIALLY INTENDED TO ESTABLISH WHETHER THE COURT HAS JURISDICTION TO GIVE A PRELIMINARY RULING UNDER ARTICLE 177 OF THE EEC TREATY , AND UNDER ARTICLE 150 OF THE EAEC TREATY , ON THE INTERPRETATION OF ARTICLE 3 OF THE ACT OF ACCESSION WITH REGARD TO THE INSTRUMENTS CONCERNING THE EUROPEAN SCHOOLS AND THEIR TEACHING STAFF .
20 IN ORDER TO RESOLVE THIS ISSUE IT SHOULD BE STATED IN THE FIRST PLACE THAT THE EUROPEAN SCHOOLS WERE SET UP NOT ON THE BASIS OF THE TREATIES ESTABLISHING THE EUROPEAN COMMUNITIES OR ON THE BASIS OF MEASURES ADOPTED BY THE COMMUNITY INSTITUTIONS , BUT ON THE BASIS OF INTERNATIONAL AGREEMENTS CONCLUDED BY THE MEMBER STATES , NAMELY THE ABOVEMENTIONED STATUTE OF THE EUROPEAN SCHOOL AND THE PROTOCOL ON THE SETTING-UP OF EUROPEAN SCHOOLS . THOSE AGREEMENTS TOGETHER WITH THE INSTRUMENTS , MEASURES AND DECISIONS OF ORGANS OF THE EUROPEAN SCHOOLS ADOPTED ON THAT BASIS DO NOT FALL WITHIN ANY OF THE CATEGORIES OF MEASURES COVERED BY ARTICLE 177 OF THE EEC TREATY AND ARTICLE 150 OF THE EAEC TREATY . THE MERE FACT THAT THOSE AGREEMENTS ARE LINKED TO THE COMMUNITY AND TO THE FUNCTIONING OF ITS INSTITUTIONS DOES NOT MEAN THAT THEY MUST BE REGARDED AS AN INTEGRAL PART OF COMMUNITY LAW , THE UNIFORM INTERPRETATION OF WHICH THROUGHOUT THE COMMUNITY FALLS WITHIN THE JURISDICTION OF THE COURT . THE COURT THEREFORE DOES NOT HAVE JURISDICTION TO GIVE A PRELIMINARY RULING , UNDER ARTICLE 177 OF THE EEC TREATY AND ARTICLE 150 OF THE EAEC TREATY , ON THE INTERPRETATION OF SUCH INSTRUMENTS .
21 HOWEVER , IN ORDER TO DETERMINE THE SCOPE OF ARTICLE 3 OF THE ACT OF ACCESSION WITH REGARD TO SUCH INSTRUMENTS , IT MAY BE NECESSARY TO DEFINE THEIR LEGAL STATUS AND , CONSEQUENTLY , TO SUBJECT THEM TO SUCH SCRUTINY AS IS NECESSARY FOR THAT PURPOSE . IN PERFORMING THAT TASK THE COURT DOES NOT HOWEVER ACQUIRE , ON THE BASIS OF ARTICLE 3 OF THE ACT OF ACCESSION , FULL AND COMPLETE JURISDICTION TO INTERPRET THE INSTRUMENTS IN QUESTION WHICH IT DOES NOT HAVE UNDER ARTICLE 177 OF THE EEC TREATY AND ARTICLE 150 OF THE EAEC TREATY .
22 IN REPLY TO QUESTION 1 ( A ) IT MUST THEREFORE BE STATED THAT THE COURT OF JUSTICE HAS JURISDICTION TO INTERPRET ARTICLE 3 OF THE ACT OF ACCESSION ; BY VIRTUE OF SUCH JURISDICTION IT MAY INTERPRET THE MEASURES COVERED BY THAT PROVISION ONLY IN ORDER TO DETERMINE ITS SCOPE , AND NOT FOR THE PURPOSE OF DEFINING MEMBER STATES '  OBLIGATIONS UNDER SUCH MEASURES .

ARTICLE 3 OF THE ACT OF ACCESSION
55 AS THE COURT HAS ALREADY HELD IN ITS JUDGMENTS OF 28 MARCH 1979 ( CASE 175/78 SAUNDERS ( 1979 ) ECR 1129 ) AND OF 27 OCTOBER 1982 ( JOINED CASES 35 AND 36/82 MORSON AND JHANJAN ( 1982 ) ECR 3723 ), THE PRINCIPLE OF NON-DISCRIMINATION ENSHRINED IN ARTICLE 7 OF THE EEC TREATY , TOGETHER WITH THE SPECIFIC EXPRESSION OF THAT PRINCIPLE IN ARTICLE 48 , CANNOT BE APPLIED TO SITUATIONS WHICH ARE WHOLLY INTERNAL TO A MEMBER STATE AND WHICH ARE IN NO WAY CONNECTED TO ANY SITUATIONS ENVISAGED BY COMMUNITY LAW . THE MERE FACT THAT NATIONALS OF A MEMBER STATE ARE EMPLOYED BY A EUROPEAN SCHOOL SITUATED ON THE TERRITORY OF THAT STATE IS NOT SUFFICIENT TO CONFER ON THOSE PERSONS THE BENEFIT OF THE COMMUNITY RULES ON THE FREE MOVEMENT OF WORKERS AND TO LIMIT THE POWER OF THAT MEMBER STATE TO ADOPT MEASURES IN RELATION TO THEM WHICH ARE MORE RESTRICTIVE THAN THOSE APPLIED TO NATIONALS OF OTHER MEMBER STATES .
56 IT FOLLOWS THAT ARTICLE 7 OF THE EEC TREATY CANNOT BE RELIED UPON TO PROHIBIT A MEMBER STATE FROM APPLYING TO THE TEACHING STAFF OF A EUROPEAN SCHOOL SITUATED ON ITS TERRITORY TAX TREATMENT WHICH IS LESS FAVOURABLE TO ITS OWN NATIONALS THAN TO THE NATIONALS OF OTHER MEMBER STATES .