SUBSUBSIDIARY CAPITAL DUTY TAXATION NETHERLANDS GERMANY BRITAIN ECJ
January 1st, 2006
BY KEITH NUTHALL
EUROPEAN Union (EU) member states should not levy capital duties on subsidiaries, when a parent company boosts the capital of a sub-subsidiary, the European Court of Justice (ECJ) has ruled. It said that although such financial transfers might boost the share value of a subsidiary, this is merely "an automatic and incidental economic repercussion", not a "second separate contribution which could...be subject to tax". The court was ruling in a case involving payments from Britain's Senior Engineering Investments Ltd to German ...
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