EC tax review 2014/4 - Prof.Mr.Drs. H.P.A.M. van Arendonk
The decision of the European Court of Justice (ECJ) inthe National Grid Indus case (C-371/10) was announcedon 29 November 2011. This was followed by ReinoutKok’s detailed discussion of the verdict in the EC TaxReview of 2012-4. In contrast to ECJ case law onprotective assessments imposed upon emigration,1 theECJ applied a different approach to enterprises transferring their effective place of management toanother Member State. Although the ECJ ruled that a final assessment should be imposed at the time ofemigration and the exit state therefore did not have to take account of any subsequent changes in value, the immediate imposition of exit taxes was considered toconstitute a disproportionate restriction. The exit statewas, therefore, ordered to offer the taxpayer the option of immediate settlement or deferral. In the latter case, the exit state can charge interest, providing this option isalso permitted by law in the domestic situation,2 and demand a bank guarantee.
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