Deductible input tax: income from foreign branches
In the French case of Société le Credit Lyonnais v Ministre du Budget des Comptes Publics et de la Réforme de l’État (CJEU Case C-388/11) a bank claimed that in calculating its deductible proportion of input tax it should be permitted to take account of income arising from branches in other Member States. The tax authority rejected the claim and the bank appealed. The case was referred to the CJEU which rejected the bank’s contentions holding that Articles 17 and 19 of the Sixth Directive must be interpreted as meaning that in determining the deductible proportion of input tax a company whose principal establishment was in a Member State may not take into account the turnover of branches established in other Member States or in States outside the EU. Furthermore Article 17(5) ‘must...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Deductible input tax: income from foreign branches
In the French case of Société le Credit Lyonnais v Ministre du Budget des Comptes Publics et de la Réforme de l’État (CJEU Case C-388/11) a bank claimed that in calculating its deductible proportion of input tax it should be permitted to take account of income arising from branches in other Member States. The tax authority rejected the claim and the bank appealed. The case was referred to the CJEU which rejected the bank’s contentions holding that Articles 17 and 19 of the Sixth Directive must be interpreted as meaning that in determining the deductible proportion of input tax a company whose principal establishment was in a Member State may not take into account the turnover of branches established in other Member States or in States outside the EU. Furthermore Article 17(5) ‘must...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
