Wednesday, October 15, 2008

ECJ Ruling Permits Cross Border Charitable Tax Deductions

ECJ Ruling Permits Cross Border Charitable Tax Deductions: "An Advocate General to the European Court of Justice has ruled that the German tax authorities were wrong to disallow a tax deduction for a charitable donation by a German citizen because the beneficiary organisation was located in another member state.

In his opinion, published on Tuesday, Advocate General Mengozzi argued that less favourable tax treatment for cross-border donations may discourage people from making such donations and found that the German legislation constitutes a restriction on the movement of capital within the single market."

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