||All England Reporter
|| All ER (D) 65 (Jan)
||Court of Justice of the European Communities (Second Chamber)
Judges Timmermans (President of the Chamber) Bay Larsen (Rapporteur), Schiemann, Makarczyk and Toader
||17 January 2008
European community - Freedom of movement - Capital - Inheritance tax - Free movement of capital - Valuation of assets forming part of estate - Agricultural and forestry assets in another member state - Less favourable method of valuation of assets and calculation of tax payable - EC Treaty, arts 73b and 73d of the EC Treaty.
Article 73b(1) of the EC Treaty, read in conjunction with art73d of the EC Treaty, had to be interpreted as precluding legislation of a member state which, for the purposes of calculating the tax on an inheritance consisting of assets situated in that state and agricultural land and forestry situated in another member state, provided that account be taken of the fair market value of the assets in that other member state, whereas a special valuation procedure existedfor identical domestic assets, the results of which amount on average to only 10% of that fair market value, and reserved application of a tax-free amount to domestic agricultural land and forestry in relation to those assets and took account of their remaining value in the amount of only 60% thereof. In the instant case the fact that the grant of tax advantages in relation to inheritance tax was made subject to the condition that the asset acquired by inheritance be situated in the national territory constituted a restriction on the free movement of capital prohibited, in principle, by art73b(1) of the Treaty.
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