Co-Ordination of Corporate Exit Taxation in the Internal Market and Beyond
Corporate exit taxation is an important obstacle to the deepening of economic integration within the internal market and beyond, as it distorts cross-border business activities of multinational enterprises and hinders cross-border business reorganisations. This article argues that the problems related to corporate exit taxation can only be addressed in a satisfactory way through co-ordination. It describes how a co-ordinated corporate exit taxation regime should be designed and how it could be implemented within the EU, in the context of a common corporate tax base or through a targeted harmonisation measure, as well as outside the EU in Double Taxation Conventions.
The European cross-border conversion from a Dutch tax and legal perspective
SUBSCRIPTION ENQUIRIES For all countries not mentioned below: Kluwer Law International, P.O. Box 316, 2400 AH Alphen aan den Rijn, The Netherlands Tel. +31 172 64 1562; Fax +31 172 64 1515 For Germany, Austria, Switzerland: Wolters Kluwer Deutschland GmbH, P.O. Box 2352, 56513 Neuwied, Germany Tel. +49 2631 8010 For Belgium and Luxembourg: Établissement Émile Bruylant, Rue de la Régence 67, Brussels 1000, Belgium Tel. +32 2 512 98 45
Deferment of Exit Taxes after National Grid Indus: Is the Requirement to Provide a Bank Guarantee and the Charge of Interest Proportionate?
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's 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.