Reference for a preliminary ruling from the Niedersächsisches Finanzgericht (Germany) lodged on 24 October 2006 - SECURENTA Göttinger Immobilienanlagen und Vermögensmanagement AG als Rechtsnachfolgerin der Göttinger Vermögensanlagen AG v Finanzamt Göttingen

(Case C-437/06)

Language of the case: German

Referring court

Niedersächsisches Finanzgericht

Parties to the main proceedings

Applicant: SECURENTA Göttinger Immobilienanlagen und Vermögensmanagement AG als Rechtsnachfolgerin der Göttinger Vermögensanlagen AG

Defendant: Finanzamt Göttingen

Questions referred

If a taxable person simultaneously engages in a business activity and a non-business activity, is the entitlement to deduct input tax determined according to the proportion of assessable and taxable transactions, on the one hand, to the assessable and exempt transactions, on the other hand (the applicant's view), or is the deduction of tax allowed only to the extent that the expenditure connected with the issue of shares and silent partnerships is to be attributed to the applicant's economic activity within the meaning of Article 2(1) of Council Directive 77/388/EEC ¹ of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes?

If the deduction of tax is allowed only to the extent that the expenditure connected with the issue of shares and silent partnerships is to be attributed to the applicant's economic activity, should the apportionment of the input tax between business activity and non-business activity be carried out according to a so-called 'investment formula' or is - as the applicant submits - a 'transaction formula', applying Article 17(5) of Directive 77/388/EEC mutatis mutandis, also appropriate?

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¹ - OJ 1977 L 145, p. 1.