Official Journal of the European Union

(Case C-298/05) (<span class="super">1</span>)

(Articles 43 EC and 56 EC - Taxes on revenue and wealth - Conditions for taxing the profits of an establishment situated in another Member State - Double taxation convention - Methods of exempting or offsetting tax)

(2008/C 22/04)

Language of the case: German

Referring court

Parties to the main proceedings

Applicant: Columbus Container Services BVBA & Co.

Defendant: Finanzamt Bielefeld-Innenstadt

Re:

Reference for a preliminary ruling — Finanzgericht Münster — Interpretation of Articles 43 EC, 56 EC, 57 EC and 58 EC — Freedom of establishment and free movement of capital — Controlled-foreign-corporation income which is the designated passive income of a foreign permanent establishment of a party with unlimited liability to tax in Germany — National legislation offsetting the foreign tax on that income against national tax, contrary to the provisions of the double taxation convention with Belgium, which provides for use of the method of exemption from taxation

Operative part of the judgment

Articles 43 EC and 56 EC must be interpreted as not precluding tax legislation of a Member State under which the income of a resident national derived from capital invested in an establishment which has its registered office in another Member State is, notwithstanding the existence of a double taxation convention concluded with the Member State in which the establishment has its registered office, not exempted from national income tax but is subject to national taxation against which the tax levied in the other Member State is set off.

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(<span class="super">1</span>) OJ C 271, 29.10.2005.