This document is an excerpt from the EUR-Lex website
Document 62008CN0307
Case C-307/08: Action brought on 9 July 2008 — Commission of the European Communities v Kingdom of Belgium
Case C-307/08: Action brought on 9 July 2008 — Commission of the European Communities v Kingdom of Belgium
Case C-307/08: Action brought on 9 July 2008 — Commission of the European Communities v Kingdom of Belgium
SL C 272, 25.10.2008, p. 7–8
(BG, ES, CS, DA, DE, ET, EL, EN, FR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
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25.10.2008 |
EN |
Official Journal of the European Union |
C 272/7 |
Action brought on 9 July 2008 — Commission of the European Communities v Kingdom of Belgium
(Case C-307/08)
(2008/C 272/09)
Language of the case: French
Parties
Applicant: Commission of the European Communities (represented by: J.-P. Keppenne and R. Lyal, acting as Agents)
Defendant: Kingdom of Belgium
Form of order sought
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Declare that, since it does not prevent double taxation of dividends paid by undertakings domiciled in another Member State or EEA/EFTA State to natural persons, the Kingdom of Belgium has failed to fulfil its obligations under Article 56 EC and Article 40 of the European Economic Area Agreement; |
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order the Kingdom of Belgium to pay the costs. |
Pleas in law and main arguments
By its action, the Commission submits that Belgian tax legislation creates an unjustified restriction on the free movement of capital inasmuch as it taxes dividends payment to natural persons by companies established in another Member State or in a State of the European Economic Area (‘incoming’ dividends) in the same way as dividends paid by companies established in Belgium (‘internal’ dividends), without taking into account taxation at source paid in the State from which the dividends originate. Such legislation penalises cross-border capital transactions since it dissuades individual taxpayers from investing in shares in foreign companies and at the same time it constitutes an obstacle to the accumulation of capital in Belgium for companies having their registered office in other Member States.