Action in the case Commission v Germany.

Under the German provisions, the resulting profit on the sale of certain capital assets of a business is not immediately taxed where the taxpayer goes on to purchase anew or produce certain capital assets of the business within a certain time period. In that case, the taxation of the aforementioned profit from the sale of the original assets is deferred by way of a ‘transfer' of the corresponding hidden reserves until the sale of the newly purchased or produced assets. That deferral can, however, be granted only where the newly purchased or produced assets belong to the capital assets of a domestic permanent establishment, and not, however, where the permanent establishment concerned is located in another Member State or in another State of the European Economic Area. According to the Commission, that rule infringes the freedom of establishment.



Informatiesoort: Nieuws

Rubriek: Europees belastingrecht

H&I: Previews


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