''Finanzamt Köln Altstadt v Schumacker'' (1995
C-279/93is an
EU law
European Union law is a system of rules operating within the member states of the European Union (EU). Since the founding of the European Coal and Steel Community following World War II, the EU has developed the aim to "promote peace, its val ...
case, concerning the
free movement of workers
The freedom of movement for workers is a policy chapter of the acquis communautaire of the European Union. The free movement of workers means that nationals of any member state of the European Union can take up an employment in another member stat ...
in the European Union.
Facts
Roland Schumacker argued that he should get extra
tax benefits in Germany. He was Belgian, lived in Belgium and worked in Germany. He paid German
income tax
An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...
, but was denied benefits that resident
taxpayer
A taxpayer is a person or organization (such as a company) subject to pay a tax. Modern taxpayers may have an identification number, a reference number issued by a government to citizens or firms.
The term "taxpayer" generally characterizes o ...
s received. Germany argued that it was hard to determine the income received by
non-residents in their state of residence to assess deductions.
Judgment
The
Court of Justice held that a non-resident taxpayer who receives almost all income in a state of employment is objectively comparable to someone who does the same work there. It followed that Schumacker should be entitled to the tax benefits.
See also
*
European Union law
Notes
References
*
{{DEFAULTSORT:Finanzamt Koln Altstadt v Schumacker
European Union labour case law