Tax Treaty Case Law around the Globe 2024

5.1. Introduction

This case concerns an appeal brought by the appellant, a taxpayer, before the Croatian High Administrative Court. The Court was called upon to decide on the appeal against the judgment of the Administrative Court (court of the first instance), concerning the issue of the personal income tax on his employment income that appellant considered illegally charged by the Croatian tax authority. The appellant invoked the Agreement between the Republic of Croatia and the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, specifically - article 4 of the Agreement, dealing with the issue of dual residence.

The issue was the tax on the appellant’s income from the employment in 2018, paid in Luxembourg and due to be credited against the same Croatian tax. Prior to the personal income tax charging procedure, the appellant tried unsuccessfully to obtain the change of his Croatian resident to non-resident status. Notwithstanding the failure to obtain that, during the whole procedure he claimed to be Belgian resident, claiming, therefore, that article 4 of the Croatia-Belgium tax treaty was to...