December 19, 2014

On December 18, 2014 the European Court of Justice (CJEU) ruled in Case C-133/13, Staatssecretaris van Economische Zaken and Staatssecretaris van Financiën versus Q (ECLI:EU:C:2014:2460).

The following questions were referred to the CJEU for a preliminary ruling:

1. Does the importance of the conservation of national natural heritage and cultural and historical heritage, as addressed in the [Law on nature protection], constitute an overriding reason in the public interest which justifies a scheme whereby the application of an exemption from gift tax (tax benefit) is limited to estates situated in the Netherlands?
2.  
1. May the authorities of a Member State, in the context of an investigation into whether an immovable property situated in another Member State may be designated as an estate for the purposes of the [Law on nature protection], rely on Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures [(OJ 2010 L 84, p. 1)] for assistance from the authorities of the Member State in which the immovable property is situated, when the designation as an estate pursuant to that law will result in an exemption being granted from the recovery of the gift tax which will be payable upon donation of that immovable property?
2. If question 2(a) must be answered in the affirmative, must the concept of “administrative enquiry” in Article 3(7) of Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC [(OJ 2011 L 64, p. 1)] be interpreted as meaning that it also covers an on-site investigation?
3. If question 2(b) must be answered in the affirmative, may clarification of the term “administrative enquiries” in Article 5(1) of [Directive 2010/24] be sought in the definition of the term “administrative enquiry” in Article 3(7) of [Directive 2011/16]?
3. If question 2(a), question 2(b) or question 2(c) must be answered in the negative, should the principle of sincere cooperation, as laid down in Article 4(3) TEU, considered in conjunction with Article 167(2) TFEU, be interpreted as meaning that, when a Member State requests another Member State to provide assistance with the investigation of whether an immovable property situated in that other Member State may be designated as an estate for the purposes of a law which has as its aim the conservation and protection of national natural heritage and cultural and historical heritage, the requested Member State is obliged to provide that assistance?
4. Can a restriction on the free movement of capital be justified by invoking the need to guarantee effective fiscal controls, if it appears that the only risk to effectiveness of those controls is the need for national authorities to travel to another Member State for the period of 25 years referred to in Article 7(1) of the [Law on nature protection] in order to carry out the necessary controls there?

The CJEU ruled as follows:

Article 63 TFEU must be interpreted as not precluding legislation of a Member State, such as that at issue in the main proceedings, under which an exemption from gift tax relating to certain properties that are protected on account of their forming part of the national cultural and historical heritage is limited to those properties situated in the territory of that Member State, provided that that exemption is not excluded in the case of properties that may form part of the cultural and historical heritage of that Member State despite being located in the territory of another State.

For further information click here to be forwarded to the text of the ruling as published on the website of the Court of Justice, which will open in a new window.

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