Article 110 Flashcards
Article 110 (1) TEFU
No member state should impost directly or indirectly on the product of other member states any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products.
Denkavit v France
Defined internal taxation as a general system of internal dues applied systematically and in accordance with the same criteria to domestic products and imported products alike.
What is meant by a similar products
The court specified in the judgement that is necessary
to considered as similar products which have similar characteristics and meet the same needs from the point of view of consumers.
Article 110(2)
Furthermore, no member state shall impose on the products of other member states any internal taxation of such a nature as to afford indirect protection to other products.
Where imported domestics goods are not similar but simply inn competition with each other, national taxation must not give advantage to the domestic product Necessary to consider cross elasticity of of demand
Directly discriminatory tax.
Tax which subject imported goods to an additional charge.
Haahr Peteroleum - directly discriminatory tax
All goods unloaded at Danish ports were subjected to a shipping tax. However, where imported goods were being unloaded, these imported goods were subjected to an additional 40% sub-charge such discriminatory behaviour breached article 110 TFEU.
Indirectly discriminatory tax
A taxation which does not intend to discriminate between imported and domestically produced goods but nevertheless has a discriminatory effect in reality.
Humblot
French annual tax on cars between cars below 16hp and above 16hp with those in the higher power rating being taxed at several times that of that of those below 16hp. France did not make cars which were above 16hp and therefore taxation would unfairly benefit domestic goods breaching article 110
Chemical Farmaceutici
Indirectly discriminatory taxation relating to alcohol products. Taxed synthetic ethyl alcohol at 6 times the rate at which it taxed fermented ethyl alcohol. Synthetic ethyl was not produced in Italy so it has the indirect effect of protecting domestic products and prevent access to the Italian market for importers.
Commission v Ireland (tax collection method)
Ireland allowed for a deferred payment of 4-6 weeks of the imposition of an excise duty but for other member states the date of payment is on the date of importation.
although the rates paid were the same - the commission still saw the deferred payment as unfair on other member states.
Ireland argued that Article 110 only prohibited tax rates in excess of that imposed on domestic products by banning this tax method they are introducing different factors into the article which could detrimental.
Outokumpu
The court of justice held that there is a breach of article 110 where a method of tax calculation leads to a higher tax on the imported product.
Chemical Fermaceutici - objective justification
Justification accepted for difference in tax rates because it was meant to promote the use of raw materials for more imported uses.
Commission v Greece
The court of justice considered an environmental justification for car taxation system. Greece imposed a tax on cars once over a 1.8 litre engine. Greece did not produce cars over 1.6 litres. The court considered whether the tax measure would discourage Greeks from purchasing foreign cars. Court found there to be not protective motivation behind the tax.
Commission v France (Fruit spirits)
Compared the similatiry of non-fruit spirits and fruit spirits. Not necessary for goods to have an identical nature but rather similar characteristics and comparable use.
John Walker v Ministeriet for Skatter
Compared scotch Whisky and Liqueur to see whether the beverages are capable of meeting the same needs from the point of view of consumers. It would not be sufficient to render scotch whisky similar to fruit wine of the liqueur type whose intrinsic characteristics are fundamentally different.
