On 23 July 2008, reference was made to the European Court of Justice (ECJ) by the Commissione Tributaria Redionale (Italy) for a preliminary ruling in the case General Beverage Europe B.V. v. Agezania Delle Entrte – Ufficio di Alba (C-339/08).

The national court requested the ECJ to answer the following questions:

"Whether the withholding tax levied on the dividend adjustment constitutes withholding tax on profits prohibited under Article 5 of Directive 90/435/EEC;

Whether the protective clause referred to in Article 7(2) of that Directive applies, in particular whether Article 7(2) of Directive 435/90/EEC of 23 July 1990 must be interpreted as meaning that a Member State may decide not to apply the exemption referred to in Article 5(1) of the Directive in the case that the State of residence of the parent company grants the latter a tax credit by virtue of a bilateral convention."

Preliminary ruling requested from ECJ on interpretation of EC Parent-Subsidiary Directive with respect to Italian tax on dividend adjustment (P. FERRERO)

On 23 July 2008, reference was made to the European Court of Justice (ECJ) by the Commissione Tributaria Regionale (Italy) for a preliminary ruling in the case of P. FERRERO e C. Spa v Agenzia Entrate Ufficio di Alba (C-338/08).

The national court requested the ECJ to answer the following questions:

" Whether the withholding tax applicable to the dividend adjustment constitutes withholding tax on profits prohibited by Article 5(1) of 435/90/EEC (in the case in point the subsidiary opted for the agreement-based regime);

As a subordinate point, in the case of an affirmative answer to the first question, whether the protective clause referred to in Article 7(2) of the Directive applies."