European Union, Germany and CJEU: the Schumacker principle applies to Swiss residentsMarch 6, 2013
On 28 February 2013, the Court of Justice of the European Union (CJEU) gave its decision in the case of Katja Ettwein vs. Finanzamt Konstanz (C-425/11).
The Financial Court of Baden-Württemberg (Finanzgericht Baden-Württemberg) had requested a preliminary ruling from the CJEU on 16 August 2011.
The CJEU held that:
“Article 1(a) of the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons, signed in Luxembourg on 21 June 1999, (Agreement on free movement) and Articles 9(2), 13(1) and 15(2) of Annex I to that Agreement must be interpreted as precluding legislation of a Member State which refuses the benefit of joint taxation with the use of the ‘splitting’ method, provided for by that legislation, to spouses who are nationals of that State and subject to income tax in that State on their entire taxable income, on the sole ground that their residence is situated in the territory of the Swiss Confederation.”
A more substantial report containing details of the CJEU’s decision will be published subsequently in the CJEU Case Law collection.
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