TaxPersonal TaxECJ clamps down on shareholders’ rules

ECJ clamps down on shareholders' rules

European Court of Justice makes discriminatory national rules illegal

The ECJ has ruled illegal under European Union law discriminatory national
rules imposing more taxation on foreign European Union shareholders than is paid
by domestic shareholders.

Judges found for a French national Margaretha Bouanich, who received 917,000
euros from a Swedish public limited company, Förvaltnings AB Ratos, which had
decided to reduce its share capital. She launched legal action after the Swedish
local tax board, the Skatteverket, subsequently refused to refund tax charged on
her earnings from the repurchase.

Under Swedish regulations, non-resident shareholders cannot deduct the
initial cost of buying repurchased shares as an allowable business expense,
while those resident in Sweden can. The ruling is a legal precedent in all EU
member states, including Britain.

Related Articles

Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4w Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

2m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

2m Alia Shoaib, Reporter
HMRC collects record £5bn in inheritance tax

HMRC HMRC collects record £5bn in inheritance tax

3m Emma Smith, Managing Editor
Making Tax Digital: What might HMRC’s penalties model look like?

Corporate Tax Making Tax Digital: What might HMRC’s penalties model look like?

3m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

2m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

3m Emma Smith, Managing Editor
Rangers tax case to have ‘dramatic’ consequences for football and business

Legal Rangers tax case to have ‘dramatic’ consequences for football and business

3m Emma Smith, Managing Editor