Reports of Cases

2006 I-07995

Subject-matter

Preliminary ruling – The Special Commissioners – National legislation attributing to a parent company the profits of a subsidiary resident in another Member State which has a lower rate of taxation – Obligation of the parent company to pay a charge in order to make up the difference between the two rates of taxation – Whether compatible with Articles 43 EC, 49 EC and 56 EC

Systematic classification scheme

Citations of case-law or legislation

References in grounds of judgment

• EC Treaty (Amsterdam), Article 43 : paragraphs 1, 28 - 30, 32, 38, 39, 41, 46, 73 - 75
• EC Treaty (Amsterdam), Article 46 -P1 : paragraph 49
• EC Treaty (Amsterdam), Article 48 : paragraphs 30, 32, 38, 39, 41, 46, 73 - 75
• EC Treaty (Amsterdam), Article 49 : paragraphs 1, 28, 29, 33
• EC Treaty (Amsterdam), Article 56 : paragraphs 1, 28, 29, 33
• Directive 77/799 : paragraph 71
• Court of Justice - Judgment C -2/74 : paragraph 53
• Court of Justice - Judgment C -115/78 : paragraph 35
• Court of Justice - Judgment C -270/83 : paragraph 49
• Court of Justice - Judgment C -61/89 : paragraph 35
• Court of Justice - Judgment C -221/89 : paragraph 54
• Court of Justice - Judgment C -246/89 : paragraph 54
• Court of Justice - Judgment C -55/94 : paragraph 53
• Court of Justice - Judgment C -250/95 : paragraph 47
• Court of Justice - Judgment C -264/96 : paragraphs 42, 50
• Court of Justice - Judgment C -212/97 : paragraphs 35, 37, 38, 52
• Court of Justice - Judgment C -294/97 : paragraph 49
• Court of Justice - Judgment C -307/97 : paragraph 41
• Court of Justice - Judgment C -311/97 : paragraph 40
• Court of Justice - Judgment C -251/98 : paragraph 31
• Court of Justice - Judgment C -478/98 : paragraph 51
• Court of Justice - Judgment C -110/99 : paragraph 64
• Court of Justice - Judgment C -136/00 : paragraph 49
• Court of Justice - Judgment C -324/00 : paragraph 51
• Court of Justice - Judgment C -436/00 : paragraphs 31, 52
• Court of Justice - Judgment C -167/01 : paragraphs 37, 38
• Court of Justice - Judgment C -364/01 : paragraph 36
• Court of Justice - Judgment C -422/01 : paragraph 49
• Court of Justice - Judgment C -9/02 : paragraphs 47, 51
• Court of Justice - Judgment C -36/02 : paragraph 33
• Court of Justice - Judgment C -319/02 : paragraph 40
• Court of Justice - Judgment C -446/03 : paragraphs 40 - 42, 47, 51, 56
• Court of Justice - Judgment C -341/04 : paragraph 68
• Court of Justice - Judgment C -471/04 : paragraph 41

Operative part

• Interprets : EC Treaty (Amsterdam), Article 43
• Interprets : EC Treaty (Amsterdam), Article 48

Opinion

• EC Treaty (Amsterdam), Article 43 : points 28, 32, 40, 41, 48, 50, 51, 57, 60, 62 - 64, 81, 103, 106, 151, 152
  
• EC Treaty (Amsterdam), Article 46 -P1 : point 64
  
• EC Treaty (Amsterdam), Article 48 : points 32, 40, 41, 48, 50, 57, 60, 64, 81, 103, 151, 152
  
• EC Treaty (Amsterdam), Article 49 : point 28
  
• EC Treaty (Amsterdam), Article 56 : points 28, 29
  
• EC Treaty (Amsterdam), Article 58 -P1LB : point 29
  
• EC Treaty (Amsterdam), Article 87 : point 58
  
• EC Treaty (Amsterdam), Article 88 : point 58
  
• EC Treaty (Amsterdam), Article 94 : point 59
  
• Directive 77/799 : points 6, 135, 136
  
• Directive 90/434 -A11P1LA : point 29
  
• Directive 90/435 : point 7
  
• Directive 90/435 -A01P2 : point 29
  
• Directive 2003/49 -A05P2 : point 29
  
• Additional Right - Measure published in the OJ L series - 41998X0106 : point 56
  
• Court of Justice - Judgment C -2/74 : points 41, 42
  
• Court of Justice - Judgment C -81/87 : points 42, 49, 62
  
• Court of Justice - Judgment C -221/89 : point 42
  
• Court of Justice - Judgment C -246/89 : points 29, 42
  
• Court of Justice - Judgment C -330/91 : point 63
  
• Court of Justice - Judgment C -279/93 : point 135
  
• Court of Justice - Judgment C -55/94 : point 42
  
• Court of Justice - Judgment C -206/94 : point 105
  
• Court of Justice - Judgment C -250/95 : point 122
  
• Court of Justice - Judgment C -118/96 : points 34, 35
  
• Court of Justice - Judgment C -264/96 : points 52, 62, 64, 86, 87, 89
  
• Court of Justice - Judgment C -212/97 : points 44, 46, 91
  
• Court of Justice - Judgment C -294/97 : points 34, 35, 54, 82
  
• Court of Justice - Judgment C -311/97 : point 78
  
• Court of Justice - Judgment C -373/97 : point 105
  
• Court of Justice - Judgment C -55/98 : point 135
  
• Court of Justice - Judgment C -397/98 : point 53
  
• Court of Justice - Judgment C -478/98 : point 53
  
• Court of Justice - Judgment C -110/99 : points 88, 105, 118, 119, 145
  
• Court of Justice - Judgment C -208/00 : point 41
  
• Court of Justice - Judgment C -324/00 : points 53, 64, 86, 87, 90
  
• Court of Justice - Judgment C -436/00 : points 32, 53, 62, 86, 87, 89, 91, 122
  
• Court of Justice - Judgment C -167/01 : points 47, 48
  
• Court of Justice - Judgment C -364/01 : points 54, 82
  
• Court of Justice - Judgment C -422/01 : point 54
  
• Court of Justice - Opinion C -255/02 : point 118
  
• Court of Justice - Judgment C -9/02 : points 12, 52, 62, 86, 87, 90, 122
  
• Court of Justice - Judgment C -36/02 : point 36
  
• Court of Justice - Judgment C -255/02 : points 118, 119
  
• Court of Justice - Judgment C -334/02 : point 135
  
• Court of Justice - Judgment C -446/03 : points 52, 62, 93 - 99, 103, 108
  
• Court of Justice - Judgment C -471/04 : point 62
  

Dates

Date of the lodging of the application initiating proceedings

• 03/05/2004

Date of the Opinion

• 02/05/2006

Date of the hearing

Information not available

Date of delivery

12/09/2006

References

Publication in the Official Journal

Application: OJ C 168 from 26.06.2004, p.3

Judgment: OJ C 281 from 18.11.2006, p.5

Name of the parties

Cadbury Schweppes and Cadbury Schweppes Overseas

Notes on Academic Writings

1. Baker, Philip: Pending Cases Filed by UK Courts I: The Cadbury Schweppes Case, the CFC and Dividend GLO and the Vodafone 2 Case, ECJ : recent developments in direct taxation (Ed. Linde - Wien) 2006 p.311-321 (EN)
2. Meier, Eric: Liberté d'établissement et loi sur les sociétés étrangères contrôlées (À propos de CJCE, conclusions du 2 mai 2006, affaire C-196/04, "Cadbury Schweppes"), Petites affiches. La Loi / Le Quotidien juridique 2006 nº 110 p.4-5 (FR)
3. Körner, Andreas: German Reference to the ECJ for a Preliminary Ruling: Unilateral Switch-over Clause and CFC Rules, Intertax 2006 p.32-36 (EN)
4. Sedemund, Jan: Cadbury/Schweppes: Britische Regelungen zur Hinzurechnungsbesteuerung nur im Falle rein künstlicher Gestaltungen europarechtskonform, Betriebs-Berater 2006 p.2119-2120 (DE)
5. Ackermann, Günther: Wieder eine Mahnung aus Luxemburg, Der Betrieb 2006 Heft 38 p.I (DE)
6. Ackermann, Günther: Niederlassungsfreiheit - Gemeinschaftsrechtskonformität der Hinzurechnungsbesteuerung? - Rechtfertigungsgründe - Abgrenzung zum Missbrauch, Der Betrieb 2006 p.2050 (DE)
7. Lieber, Bettina: Einbeziehung der Gewinne beherrschter ausländischer Gesellschaften in die Steuerbemessungsgrundlage der britischen Muttergesellschaft, Finanz-Rundschau Ertragsteuerrecht 2006 p.993-995 (DE)
8. Boutemy, Bernard ; Meier, Eric: Sociétés étrangères contrôlées et liberté d'établissement (CJCE, 12 septembre 2006, Cadbury Schweppes plc, aff. nº C-196/04), Petites affiches. La Loi / Le Quotidien juridique 2006 nº 221 p.4-8 (FR)
9. Pogáčová, Juliana: Rozsudok "ROZHODOVACIA PRAX SÚDNEHO DVORA A SÚDU PRVÉHO STUPŇA", Výber z rozhodnutí Súdneho dvora Európskych spoločenstiev 2006 p.60-82 (SK)
10. Rønfeldt, Thomas ; Vinther, Nikolaj: Dér røg CFC-reglerne - med 10 års tilbagevirkende kraft, Tidsskrift for Skatter og Afgifter 2006 nº 818 (DA)
11. Sedemund, Jan: Die mittelbare Wirkung der Grundfreiheiten für in Drittstaaten ansässige Unternehmen nach den EuGH-Urteilen Fidium Finanz AG und Cadbury Schweppes, Betriebs-Berater 2006 p.2781-2786 (DE)
12. Sanna, Thomas: Britische Aussensteuergesetzgebung auf dem europarechtlichen Prüfstand, European Law Reporter 2006 p.516-520 (DE)
13. Mariatte, Flavien: Fiscalité directe des entreprises et liberté d'établissement, Europe 2006 Novembre Comm. nº 314 p.18-20 (FR)
14. Rainer, Anno ; Roels, Jan ; Thömmes, Otmar ; Tomsett, Eric ; Van den Hurk, Hans ; Weening, Gerben: ECJ Restricts Scope of CFC Legislation, International Tax Review 2006 p.636-638 (EN)
15. Kanervo, Timo: Tapaus väliyhteisötulosta ratkaistu EYT:ssa, Verotus 2006 p.542-546 (FI)
16. Boutemy, Bernard ; Meier, Eric: Sociétés étrangères contrôlées et liberté d'établissement, La Semaine juridique - entreprise et affaires 2006 nº 2769 p.2117-2119 (FR)
17. Rossi, Pierpaolo: Aperta la via della concorrenza fiscale in ambito UE. Per la Corte UE, le regole CFC confliggono con la libertà di stabilimento, Il fisco : giornale tributario di legislazione e attualità 2006 p.5580-5586 (IT)
18. Bouloukos, M.: Amesi forologia epicheiriseon kai diasynoriaki metafora kerdon: I eleftheria egkatastasis os katalytis tou forologikou antagonismou, Epitheorisis tou Emporikou Dikaiou 2006 p.962-970 (EL)
19. Jørgensen, Marie Louise ; Hansen, Søren Jesper: Cadbury Schweppes - værn mod kontrollerede udenlandske selskaber (CFC-beskatning), Skat Udland 2006 nº 10 p.799-803 (DA)
20. Wattel, P.J.: Beslissingen in belastingzaken 2007 nº 54 (NL)
21. Köplin, Manfred ; Sedemund, Jan: Das BMF-Schreiben vom 8. 1. 2007 - untauglich, die EG-Rechtswidrigkeit der deutschen Hinzurechnungsbesteuerung nach Cadbury Schweppes zu beseitigen!, Betriebs-Berater 2007 p.244-248 (DE)
22. Turner, Grahame: The Legitimacy of CFC Legislation Within the Community, The EC Tax Journal 2007 Vol.9 p.23-47 (EN)
23. Perrotin, Frédérique: Un élargissement inattendu de la notion communautaire d'abus de droit, Petites affiches. La Loi / Le Quotidien juridique 2007 nº 66 p.3-5 (FR)
24. Francq, Stéphanie: Chronique de jurisprudence du Tribunal et de la Cour de justice des Communautés européennes. Circulation des personnes et des services, Journal du droit international 2007 p.653-659 (FR)
25. Beghin, Mauro: La sentenza Cadbury-Schweppes e il "malleabile" principio della libertà di stabilimento, Rassegna tributaria 2007 p.983-993 (IT)
26. Cipollina, Silvia: CFC legislation e abuso della libertà di stabilimento: il caso Cadbury Schweppes, Rivista di diritto finanziario e scienza delle finanze 2007 II p.13-28 (IT)
27. Romano, Carlo: Using Tax Haven under European Law: Cadbury Schweppes and CFC rules, Rivista di diritto tributario internazionale 2007 nº 02 p.127-139 (EN)
28. Dörfler, Oliver ; Ribbrock, Martin: Keine neuen Erkenntnisse zur Vereinbarkeit der deutschen Hinzurechnungsbesteuerung mit Gemeinschaftsrecht, Betriebs-Berater 2008 p.205-206 (DE)
29. García Caracuel, María: Incompatibilidad de la libertad de establecimiento en el Derecho Comunitario con las legislaciones nacionales de lucha contra la evasión fiscal (STJCE Cadbury Schweppes, C-196/04, de 2 de septiembre 2006), Noticias de la Unión Europea 2008 nº 282 p.55-61 (ES)
30. Douma, S.C.W.: Doorwerking van rechtspraak van het HvJ EG in de nationale rechtsorde, Weekblad voor fiscaal recht 2008 p.1175-1184 (NL)
31. Knudsen, Mette ; Pham, Kia: Misbrug af de økonomiske frihedsrettigheder, Tidsskrift for Skatter og Afgifter 2009 Særtillæg - april 2009, p.1-112 (DA)
32. Muscalu, Vasile: Libera circulație a capitalurilor. Libertatea de stabilire. Interdicția restricțiilor instituite prin legislațiile naționale. Circulația capitalurilor între statele membre ale Uniunii Europene şi țǎrile terțe. Impozitarea beneficiilor care se transmit între societǎți comerciale situate între state membre diferite sau între aceste state şi state terțe. Impozitarea dividendelor, Dreptul 2009 nº 9 p.244-247 (RO)
33. Muscalu, Vasile: Libertatea de stabilire a societăţilor. Încorporarea, în asieta impozabilă a unei societăti rezidente într-un stat membru al uniunii europene, a beneficiilor realizate de o societate străină controlată de acest stat membru. Fraudă fiscală. Condiții de reținere, Dreptul 2009 nº 11 p.221-229 (RO)
34. Roth, Günter H.: Die Bedeutung von Cadbury-Schweppes für die Centros-Judikatur des EuGH, Europäische Zeitschrift für Wirtschaftsrecht 2010 p.607-611 (DE)
35. Kraft, Gerhard ; Quilitzsch, Carsten: Verbleibende unionsrechtliche Schwachstellen der Hinzurechnungsbesteuerung nach den legislativen Rettungsbemühungen in § 8 Abs. 2 AStG, Europäisches Wirtschafts- & Steuerrecht - EWS 2012 p.130-135 (DE)
36. Nicolau, Simona Florica: Concepţia şi practica Curţii de Justiţie a Uniunii Europene în ceea ce priveşte abuzul de drept, Pandectele Romane: repertoriu trimestrial de jurisprudenta, doctrina si legislatie 2012 Vol.5 p.80-96 (RO)
37. Koerver Schmidt, P.: Are the Danish CFC Rules in Conflict with the Freedom of Establishment? - An Analysis of the Danish CFC Regime for Companies in Light of ECJ Case Law, European Taxation 2014 p.3-9 (EN)
38. Prelič, Saša ; Prostor, Jerneja: Grenzüberschreitender Statutenwechsel und Änderung der rechtlichen Organisationsform der Gesellschaft in der EU, Zeitschrift für Europarecht, internationales Privatrecht und Rechtsvergleichung 2014 p.27-36 (DE)
39. Stella, Raventós: A Landmark Decision in the Field of Abuse: Cadbury Schweppes, Landmark Decisions of the ECJ in Direct Taxation (Ed. Kluwer - Alphen aan den Rijn) 2015 p. 139-157 (EN)
40. Kuzma, Dominik: Davčni vidik brexita, Pravna praksa 2016 nº 44 p.6-8 (SL)
41. Aladjidi, Frédéric: Fusion transfrontalière : renvoi préjudiciel à la CJUE sur la conformité au droit de l'UE de l'agrément de l'article 210 C du CGI, Revue de droit fiscal 2016 N°13 p.69-73 (FR)
42. De Waal, Allard: Fusion transfrontalière : renvoi préjudiciel à la CJUE sur la conformité au droit de l'UE de l'agrément de l'article 210 C du CGI, Revue de droit fiscal 2016 N°13 p.73-76 (FR)
43. Prostor, Jerneja: Starejša sodna praksa Sodišča EU o svobodi ustanavljanja, Podjetje in delo 2018 nº 5 p.786-803 (SL)
44. Prostor, Jerneja: Sodišče EU o prenosu statutarnega sedeža družbe — od zadeve Cartesio do zadeve Polbud, Podjetje in delo 2019 nº XLV p.3-19 (SL)

Procedural Analysis Information

Source of the question referred for a preliminary ruling

Special Commissioners of Income Tax - United Kingdom

Subject-matter

• Freedom of establishment
  

Provisions of national law referred to

Income and Corporation Taxes Act 1988, sections 747 à 756 et Schedules 24 à 26

Provisions of international law referred to

Information not available

Procedure and result

• Reference for a preliminary ruling
  

Formation of the Court

grande chambre (Cour)

Judge-Rapporteur

Lenaerts

Advocate General

Léger

Language(s) of the Case

• English
  

Language(s) of the Opinion

• French