Luxembourg, 07/02/2007 (Agence Europe) - In a judgement delivered on 5 February (C-359/05), the Court has underlined that if a member state increases the amount of a tax at the same time as it converts it into euros, the two calculations must be clearly differentiated. In other words, the conversion cannot mask a tax increase, whether it does so intentionally or not.
In 2001, the company Estager paid a tax to the customs authorities of Brive-la-Gaillarde of 100 French francs per tonne of common wheat flour, groats and meal. When the conversion to euros took place in 2002, the tax went up to 16 euros, rather than the more precise equivalent of 15,24 euros. Estager is demanding that it be repaid the excess which it considers that it has paid since that date.
When referred to in this case, the Tribunal de Grande Instance in Brive asked the Court of Justice whether or not it was permissible to carry out the conversion to euros and the increase of such a tax within the same legal instrument (in the present case Ordinance n° 2000-916 of 19 September 2000, with bearing on Article 1 of law 2000-517 of 15 June 2000).
The Court responded that a member state obviously has the power to increase its taxes however and whenever it chooses to (not withstanding the restrictions of Community law). However, if the member state chooses to do so at the same time, and using the same instruments as it uses to convert to the euro, it “must ensure that legal certainty and transparency for economic agents are guaranteed”. This means that these agents must have the necessary information to be able to distinguish clearly between the part of the amount which corresponds to the conversion, and the part which constitutes the increase. (cd)