National Grid Indus BV v Inspecteur van de Belastingdienst Rijnmond/kantoor Rotterdam (C-371/10)

Judgment of 29 Nov 2011

law://eu/cjeu/2010/c-371-10/para_48@2026-11-13

48Having regard to those factors, legislation such as that at issue in the main proceedings is appropriate for ensuring the preservation of the allocation of powers of taxation between the Member States concerned. The final settlement tax levied at the time of the transfer of a company’s place of effective management is intended to subject to the Member State of origin’s tax on profits the unrealised capital gains which arose within the ambit of that State’s power of taxation before the transfer of the place of management. Unrealised capital gains relating to an economic asset are thus taxed in the Member State in which they arose. Capital gains realised after the transfer of the company’s place of management are taxed exclusively in the host Member State in which they have arisen, thus avoiding double taxation.

National Grid Indus BV v Inspecteur van de Belastingdienst Rijnmond/kantoor Rotterdam (C-371/10)

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