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_52@2026-11-13

52As the Advocate General observes in points 55 and 56 of her Opinion, establishing the amount of tax at the time of the transfer of a company’s place of effective management complies with the principle of proportionality, having regard to the objective of the national legislation at issue in the main proceedings, namely to subject to tax in the Member State of origin the capital gains which arose within the ambit of that State’s power of taxation. It is proportionate for that Member State, for the purpose of safeguarding the exercise of its powers of taxation, to determine the tax due on the unrealised capital gains that have arisen in its territory at the time when its power of taxation in respect of the company in question ceases to exist, in the present case the time of the transfer of the company’s place of effective management to another Member State.

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

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