Official Journal of the European Union

(Case C-256/06)

(Free movement of capital - Articles 73b and 73d of the EC Treaty (now Articles 56 EC and 58 EC) - Inheritance tax - Valuation of assets forming part of the estate - Agricultural and forestry assets in another Member State - Less favourable method of valuation of assets and calculation of the tax payable)

(2008/C 64/10)

Language of the case: German

Referring court

Parties to the main proceedings

Applicant: Theodor Jäger

Defendant: Finanzamt Kusel-Landstuhl

Re:

Reference for a preliminary ruling — Bundesfinanzhof — Interpretation of Article 56 of the EC Treaty — National inheritance tax legislation — Application of different methods for assessing the value of agricultural land and forestry depending on whether they are on the national territory or in another Member State and a deduction in respect of the acquisition of land on the national territory, resulting in a fiscal charge that is heavier where the assets include agricultural land and forestry in another Member State than where all the assets are on the national territory

Operative part of the judgment

Article 73b(1) of the EC Treaty (now Article 56(1) EC), read in conjunction with Article 73d of the EC Treaty (now Article 58 EC), must 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,

—provides that account be taken of the fair market value of the assets in that other Member State, whereas a special valuation procedure exists for identical domestic assets, the results of which amount on average to only 10 % of that fair market value, and

—reserves application of a tax-free amount to domestic agricultural land and forestry in relation to those assets and takes account of their remaining value in the amount of only 60 % thereof.

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(1) OJ C 224, 16.9.2006.