(October 9, 2014)

On October 9, 2014 the European Court of Justice (ECJ) ruled in case C-299/13 Isabelle Gielen versus Ministerraad, (ECLI:EU:C:2014:2266).

The following question was referred to the ECJ for a preliminary ruling:

Is Article 5(2) of Directive 2008/7/EC to be interpreted as precluding the taxation of the conversion — prescribed by law — of bearer securities into registered securities or dematerialised securities, and, if so, can such a tax be justified on the basis of Article 6 of that directive?

The ECJ ruled as follows:

Article 5(2) of Council Directive 2008/7/EC of 12 February 2008 concerning indirect taxes on the raising of capital must be interpreted as precluding the taxation of the conversion of bearer securities into registered securities or dematerialised securities such as that at issue in the main proceedings. Such a tax cannot be justified under Article 6 of that directive.

Click here to be forwarded to the ruling.

Copyright – internationaltaxplaza.info