JUDGMENT OF THE COURT

(Fifth Chamber)

11 March 2004

In Case C-9/02 (Reference for a preliminary ruling from the Conseil d'État): Hughes de Lasteyrie du Saillant v Ministère de l'Économie, des Finances et de l'Industrie (1)

(Freedom of establishment - Article 52 of the EC Treaty (now, after amendment, Article 43 EC) - Tax legislation - Transfer of residence for tax purposes to another Member State - Methods of taxing increased value of securities)

(2004/C 94/09)

Language of the case: French

In Case C-9/02: References to the Court under Article 234 EC by the Conseil d'État (France) for a preliminary ruling in the proceedings pending before that court between Hughes de Lasteyrie du Saillant and Ministère de l'Économie, des Finances et de l'Industrie, on the interpretation of Article 52 of the EC Treaty (now, after amendment, Article 43 EC), the Court (Fifth Chamber), composed of: C.W.A. Timmermans (Rapporteur), acting for the President of the Fifth Chamber, A. La Pergola and S. von Bahr, Judges; J. Mischo, Advocate General; H.A. Rühl, Principal Administrator, for the Registrar, has given a judgment on 11 March 2004, in which it has ruled:

The principle of freedom of establishment laid down by Article 52 of the EC Treaty (now, after amendment, Article 43 EC) must be interpreted as precluding a Member State from establishing, in order to prevent a risk of tax avoidance, a mechanism for taxing as yet unrealised increases in value such as that laid down by Article 167a of the French Code Général des Impôts, where a taxpayer transfers his tax residence outside that State.

(1)  OJ C 56 of 2.03.2002.