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_62@2026-11-14

62It should be recalled in this connection that the Treaty offers no guarantee to a company covered by Article 54 TFEU that transferring its place of effective management to another Member State will be neutral as regards taxation. Given the relevant disparities in the tax legislation of the Member States, such a transfer may be to the company’s advantage in terms of tax or not, according to circumstances (see, to that effect, Case C-365/02 Lindfors [2004] ECR I-7183, paragraph 34; Case C-403/03 Schempp [2005] ECR I-6421, paragraph 45; and Case C-194/06 Orange European Smallcap Fund [2008] ECR I-3747, paragraph 37). Freedom of establishment cannot therefore be understood as meaning that a Member State is required to draw up its tax rules on the basis of those in another Member State in order to ensure, in all circumstances, taxation which removes any disparities arising from national tax rules (see Case C-293/06 Deutsche Shell [2008] ECR I-1129, paragraph 43).

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

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