CJEU – Recent Developments in Direct Taxation 2017

1. S. 128Introduction

In light of the growing global trend towards combating tax avoidance and tax evasion, the exchange of tax information among Member States has become more topical than ever. This growing tax transparency often comes, however, at the cost of taxpayers’ rights. The Berlioz case, decided by the Grand Chamber of the CJEU on 16 May 2017 concerned the applicability of the EU fundamental rights of third-party information holders in the context of exchange of tax information among Member States. It is the second case, after the Sabou judgment, in which the Court has been confronted with the applicability of fundamental rights in the exchange of tax information procedures. In a case welcomed by tax scholars, the Court confirmed in Berlioz, that the Charter of fundamental rights is applicable in the administration of taxation and that a third party information holder is entitled to an effective judicial remedy.

2. Factual and legal background and the questions referred

Berlioz Investment Fund S.A. (“Berlioz”) is a Luxembourg resident company, the parent of a French subsidiary, Cofima SAS (“Cofima”). Upon the distribution of dividends from the subsidiary to Berlioz, France did not...