Categories:Europe,Tax,UK

In wake of ECJ ruling, EU member states amend exit tax regimes

Following the decision of the European Court of Justice (ECJ) in the case of National Grid Indus BV v Inspecteur van de Belastingdienst Rijnmond C-371/10, several EU member states have amended their exit tax regimes. In addition, the EU commission has issued formal requests to a number of member states to revise their existing exit tax regimes.

The countries that have issued new decrees or legislation after the National Grid Indus case include France, the Netherlands, Italy, Norway and Portugal, while a handful of other member states, such as Ireland and the UK, either have already issued draft legislation or are anticipated to issue draft legislation in the near future.

The key issue behind National Grid Indus is whether imposing exit taxes restrains businesses from exercising their right to freedom of establishment within the EU and therefore is non-compliant with EU law. National Grid Indus BV was incorporated and effectively managed in the Netherlands until December 2000. The Company subsequently transferred its place of effective management to the UK. At the time of the transfer, the Company held an unrealized gain relating to a UK-denominated receivable owed to its UK parent company. Dutch tax authorities attempted to charge tax on the amount of this unrealized gain, as was required under Dutch tax law. The Company, however, appealed to the Amsterdam Regional Court of Appeal, which referred the case to the ECJ…

If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from DLA Piper

View more briefings from DLA Piper

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

3 Noble Street
London
EC2V 7EE
UK
http://www.dlapiper.com

Turnover (£m): 1,566.29
No. of lawyers: 3,961 (UK 200)
Jurisdiction: global
No. of offices: more than 75
No. of qualified lawyers: 625 (International 50)

Jobs