DISCRIMINATORY TAXATION Flashcards
COMMISSION v FRANCE (Re Levy on Reprographic Machines)
Genuine tax is one that relates “to a general system of internal dues applied systematically to categories of products in accordance with objective criteria irrespective of the origin of products.”
COMMISSION v DENMARK
Art 110 is intended ‘to ensure the free movement of goods between the Member States in normal conditions of competition by the elimination of all forms of protection which result from the application of internal taxation which discriminates against products from other Member States.’
HANSEN
Earlier case law suggested that MSs could discriminate against products from third States.
In this case, only domestic products benefit from a reduction.
Co-Frutta
once goods have been legitimately imported, they must be treated in the same manner as goods originating in the Union
Case 57/65 Lutticke
tax levied only on imported dried milk. A tax levied only on imported goods and not on “similar” domestic goods .
Haahr Petroleum
Tax on imported goods was heavier. Discrimination direct.
Commission v Ireland
domestic producers had several weeks to pay tax, whereas importers had to pay immediately.
A method of collection that discriminates against imported goods
Humblot
France imposed higher taxes on larger cars, all of which were imported.
CJEU found that the tax constituted indirect discrimination because it was liable to ‘cancel out the advantages which certain [imported cars] might have in consumers’ eyes over comparable cars of domestic manufacture’
Case 168/78 Commission v France
Spirits made from wine and fruit were taxed more favourably than those made from other products.
Held: Although made from different products and consumed in different ways, ‘there are nevertheless, in the case of spirits, common characteristics which are sufficiently pronounced to constitute evidence in all cases of at least partial or potential competition.’
Therefore held to be similar products.
REWE- NENTRALE
1) Similar characteristics 2) satisfy the same consumer needs.
Case 106/84 Commission v. Denmark
Wine made from grapes and wine made from other fruit had the same characteristics (method of manufacture, taste and alcohol content) and were capable of meeting the same needs.
‘It is necessary to consider, in analysing the competitive relationship, the possibilities for market development and the potential for the substitution of products.’
Case 184/85 Commission v Italy
Bananas are not similar to table fruit produced in Italy because they had different characteristics (water content) and served different needs (bananas more nutritious and suited to infants), but…there is a degree of competition between them. Tax on fresh bananas was therefore contrary to Art 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.’
Case 170/78 Commission v UK
UK imposed higher tax on wine than beer.
Wine and beer are not ‘similar products’ so 110(1) does not apply.
However, ‘to a certain extent at least, the two beverages are capable of meeting identical needs’, so Art 110(2) applies because different tax treatment had a protective effect for British beer
Case 140/79 Chemial Farmaceutici v DAF
Italy imposed higher taxes on synthetic denatured alcohol than on denatured alcohol obtained from fermentation. Most synthetic alcohol was imported.
Indirectly discriminatory tax is not contrary to Art 110(1) if based on objective criteria, designed to achieve economic policy objectives which are compatible with EU law and applied so as to avoid discrimination
(NB this judgment was premised on absence of discrimination because it also discouraged local producers from producing synthetic denatured alcohol)
OBJECTIVE CRITERA.
MORSON
No prevention of reverse discrimination
