Keywords
Summary

Keywords

Tax provisions - Harmonisation of laws - Indirect taxes on the raising of capital - Taxation on notarial deeds recording the repayment of debenture loans - Not permissible

(Council Directive 69/335, Arts 11(b) and 12(1)(d))

Summary

Article 11(b) of Directive 69/335 concerning indirect taxes on the raising of capital must be interpreted as meaning that the prohibition of taxation on debenture loans extends to taxation on the repayment of such loans. Although that article does not expressly mention the repayment of debenture loans, nevertheless, prohibiting the levying of duty when debenture loans are issued but authorising it when such loans are repaid would have the effect, contrary to the objective pursued by the Directive, of taxing loans as overall operations for raising capital. Moreover, Article 11(b) prohibits not only taxation on debenture loans, but also on any formalities relating thereto.

Therefore Article 11(b) must be interpreted as meaning that the prohibition of taxation on debenture loans applies to a duty on notarial deeds recording the repayment of loans. Such a duty cannot come within the derogation provided for in Article 12(1)(d) of the Directive, since the repayment of a debenture loan constitutes a discrete financial transaction, separate from the discharge of a mortgage registered in order to secure the debentures resulting from the loan.