Preliminary ruling requested from ECJ on interpretation of Merger Directive in connection with scheme to avoid Netherlands property transfer tax

On 11 July 2008, a preliminary ruling was requested from the European Court of Justice (ECJ) by the Netherlands Supreme Court (Hoge Raad der Nederlanden) on the interpretation of the Merger Directive 90/434/EEC (Directive) in connection with a scheme designed to avoid the property transfer tax in the Netherlands.

(a) Background. Under Art. 3.55 of the Income Tax Law and Art. 14 of the Corporate Income Tax Law, stock and enterprise mergers are tax-neutral, subjec…