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Tax & Financial Standards New Judgments of the ECJ For May 2021

27.05.2021

Tax & Financial Standards New Judgments of the ECJ For May 2021

Tax & Financial Standards New Judgments of the ECJ For May 2021

Tax&Financial Standards (T&FSt) – International Financial Reporting Standards, Date or entry into force: 1.01.2021 (consolidated version), in 4 languages - Bulgarian, English, German and French

New judgments

С-709/19 of 12 May 2021

Jurisdiction and enforcement of judgments in civil and commercial matters— Jurisdiction in tort, delict or quasi-delict — Place of occurrence of the damage — Purely financial damage — Concept of „place where the harmful event occurred“

Key aspects of the decision in the economic range:

Jurisdiction in tort, delict or quasi-delict. Litigation over investments. Action for a declaratory judgment brought by an organisation for the collective defence of interests. Direct occurrence in an investment account of purely financial damage resulting from investment decisions taken as a result of easily accessible information worldwide, which is, however, inaccurate.

Concept of „place where the harmful event occurred“.

Proceedings between a shareholders' association, in Netherland, and company B, which operates worldwide and has its registered office in London, concerning the latter's liability for damages suffered by persons who have acquired, held or sold ordinary shares in B through investment account in the Netherlands.

С-844/19 of 12 May 2021

Common system of value added tax – Reduction of the taxable amount – Refund of excess VAT – Default interest – No national rule – Principle of fiscal neutrality – Direct effect of provisions of EU law – Principle that national law must be interpreted in conformity with EU law

Key aspects of the decision in the economic range:

Refund of excess VAT. Payment of interest in the case of a subsequent increase of excess VAT or a subsequent reduction of tax liability. No national implementing measures. Direct effect of a directive. Application by analogy of a non-relevant directive.

Two sets of proceedings between, first, a natural person, and the Tax Office and, secondly, the Tax Office and a company.

С-4/20 of 20 May 2021

Value added tax – Persons liable for payment of VAT to the public exchequer – Joint and several liability of the recipient of a taxable supply which has exercised its right to deduct VAT knowing that the person liable for payment of that tax would not pay it – Obligation of such a recipient to pay the VAT not paid by the person liable for payment and the default interest due on account of that person’s failure to pay the VAT

Key aspects of the decision in the economic range:

Joint and several liability of a third party who is not the person liable for payment of VAT. Extent of liability. Extension of secondary liability to default interest owed by the person liable for payment of VAT. Extended liability with a view to the effective combatting of VAT fraud. Existence of VAT fraud in the case of non-payment of the declared VAT liability. National legislation pursuant to which the person held jointly and severally liable must pay, in addition to the VAT not paid by the person liable for payment of that tax, the default interest on that amount.

Proceedings concerning the joint and several liability of A for the payment of value added tax together with default interest.

С-913/19 of 20 May 2021

Jurisdiction in civil and commercial matters — Jurisdiction in insurance matters — Ability to sue an insurer domiciled in a Member State in another Member State, in the case of actions brought by the policyholder, the insured person or a beneficiary, in the courts of the place where the person bringing the claim is domiciled — Action brought by the injured party directly against the insurer — Scope ratione personae — Business active in the insurance sector — Concepts of ‘injured party’, ‘branch’, ‘agency’ or ‘other establishment’

Key aspects of the decision in the economic range:

International jurisdiction, which rules on a dispute between, on the one hand, a company to which a person injured in a road traffic accident that occurred in Poland had assigned his rights, and, on the other, the insurance undertaking, established in Denmark, which insures the risks of the person who caused the accident. A commercial undertaking operating in a Member State which adjusts losses under compulsory insurance against civil liability in respect of the use of motor vehicles pursuant to a contract with an insurance undertaking established in another Member State.

Concepts of ‘injured party’, ‘branch’, ‘agency’ or ‘other establishment’

Proceedings between CN, a limited liability company established in Poland, and G, an insurance undertaking with its registered office in Denmark, concerning compensation for damage caused by a road traffic accident which occurred in Poland.

April

С-19/20 of 29 April 2021

Consumer protection – Unfair terms in consumer contracts – Effects of a finding that a term is unfair – Mortgage loan agreement denominated in a foreign currency – Determination of the exchange rate between currencies – Obligations of the national court

Key aspects of the decision in the economic range:

A term in a contract concluded between a seller and a consumer is unfair, even though the defect affecting that term was removed following the conclusion between those parties of an amendment to that contract and a finding that the term was unfair in its original version is capable of rendering the contract void. It is for the national court, on finding that a term of a contract concluded by a seller with a consumer is unfair, to inform the consumer of the legal consequences that the annulment of such a contract may entail, irrespective of whether the consumer is represented by a professional representative.

Proceedings between I. and Bank concerning the consequences of the unfairness of certain terms of a mortgage loan agreement concluded between those parties.

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