Implications of the Walter Stauffer Case for Charities, Donors and European Governments

Abstract:     
On 14 September 2006, the European Court of Justice (ECJ) gave its decision in Case C-386/04: Centro di Musicologia Walter Stauffer versus Finanzamt München für Körperschaften. This decision will have an important impact on the way European governments deal with charities in other EU member states. This treatment may include tax incentives such as corporate income tax exemptions, deductibility of gifts to such charities and exemption from gift and inheritance tax. After a rough sketch of different tax treatment of domestic and foreign charities in the EU the article discusses the Walter Stauffer case, the implications for donors and charities, the possible changes in legislation and the question whether the judgment is of relevance for (donations to) charities in third countries and/or European Economic Area (EEA) member states which are not members of the EU.

Number of Pages in PDF File: 11

Keywords: tax law, charities, gift deduction, European Union

JEL Classification: L31, K34

Accepted Paper Series