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10.3.2007 |
EN |
Official Journal of the European Union |
C 56/11 |
Judgment of the Court (Eighth Chamber) of 18 January 2007 — Commission of the European Communities v Kingdom of Sweden
(Case C-104/06) (1)
(Failure of a Member State to fulfil obligations - Tax legislation - Deferral of taxation on capital gains arising on sale of residential property - Articles 18 EC, 39 EC and 43 EC - Articles 28 and 31 of the Agreement on the European Economic Area)
(2007/C 56/18)
Language of the case: Swedish
Parties
Applicant: Commission of the European Communities (represented by: L. Ström van Lier and R. Lyal, acting as Agents)
Defendant: Kingdom of Sweden (represented by: A. Kruse, acting as Agent)
Re:
Failure of Member State to fulfil obligations — Infringement of Articles 18 EC, 39 EC, 43 EC and 56(1) EC and of Articles 28, 31 and 40 of the EEA Agreement — National legislation making deferral of taxation on capital gains arising on the sale of owner-occupied property when the taxable person acquires a replacement property conditional on both properties being on national territory
Operative part of the judgment
The Court:
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1. |
Declares that, by adopting and maintaining in force tax provisions, such as those in Chapter 47 of the law on income tax (1999:1229) (inkomstskattelagen (1999:1229)), which make entitlement to deferral of taxation on capital gains arising from the sale of a private residential property or of a right to reside in a private cooperative property conditional on the newly-acquired residence also being on Swedish territory, the Kingdom of Sweden has failed to fulfil its obligations under Articles 18 EC, 39 EC and 43 EC and under Articles 28 and 31 of the EEA Agreement; |
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2. |
Orders the Kingdom of Sweden to pay the costs. |