The Resource Deferment of exit taxes after National Grid Indus: is the requirement to provide a bank guarantee and the charge of interest proportionate?

Deferment of exit taxes after National Grid Indus: is the requirement to provide a bank guarantee and the charge of interest proportionate?

Label
Deferment of exit taxes after National Grid Indus: is the requirement to provide a bank guarantee and the charge of interest proportionate?
Title
Deferment of exit taxes after National Grid Indus: is the requirement to provide a bank guarantee and the charge of interest proportionate?
Creator
Subject
Language
eng
Summary
The European Court of Justice (ECJ) ruled in the National Grid Indus case that a company migrating to another EU Member State must be given the choice of either making an immediate payment of exit tax or obtaining the deferment of the payment of tax if the company is willing to bear the administrative burden of tracing the assets that have been relocated abroad. However, two statements of the Court relating to a Member State's ability to charge interest and to require a bank guarantee have caused some confusion. As demonstrated in this article, charging interest on deferred exit taxes is not proportionate and violates the freedom of establishment principle. Member States can require a security only where there is a palpable risk that the deferred tax is non-recoverable
Citation source
In: Intertax. - Alphen aan den Rijn. - Vol. 40 (2012),
http://library.link/vocab/creatorName
  • Thömmes, O
  • Linn, A
Geographic coverage
European Union
Language note
English
http://library.link/vocab/subjectName
  • ECJ case law
  • exit tax
  • deferment of tax
  • fundamental freedoms
  • interest
Label
Deferment of exit taxes after National Grid Indus: is the requirement to provide a bank guarantee and the charge of interest proportionate?
Instantiates
Publication
Label
Deferment of exit taxes after National Grid Indus: is the requirement to provide a bank guarantee and the charge of interest proportionate?
Publication

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