Derrick Guy Edmund Hurd v Kenneth Jones (Her Majesty's Inspector of Taxes).

• Jurisdiction: European Union
• Celex Number: 61984CJ0044
• ECLI: ECLI:EU:C:1986:2
• Date: 15 January 1986
• Docket Number: 44/84
• Court: Court of Justice (European Union)
• Procedure Type: Reference for a preliminary ruling

Avis juridique important

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61984J0044

Judgment of the Court of 15 January 1986. - Derrick Guy Edmund Hurd v Kenneth Jones (Her Majesty's Inspector of Taxes). - Reference for a preliminary ruling: Special Commissioners of Income Tax - United Kingdom. - European school - Liability to domestic taxation of the salaries of the teaching staff. - Case 44/84.

European Court reports 1986 Page 00029
Swedish special edition Page 00369
Finnish special edition Page 00385

Summary
Parties
Subject of the case
Grounds
Decision on costs
Operative part

Keywords

1 . PRELIMINARY RULINGS - JURISDICTION OF THE COURT - ACT OF ACCESSION OF 1972 - ARTICLE 3 - LIMITS

( EEC TREATY , ART . 177 ; EAEC TREATY , ART . 150 ; TREATY OF ACCESSION OF 1972 , ART . 1 ( 3 ); ACT OF ACCESSION OF 1972 , ART . 3 )

2 . ACCESSION OF NEW MEMBER STATES TO THE COMMUNITIES - ACT OF ACCESSION OF 1972 - ARTICLE 3 - SCOPE - EFFECTS

( ACT OF ACCESSION OF 1972 , ART . 3 )

3 . MEMBER STATES - OBLIGATIONS - ARTICLE 5 OF THE EEC TREATY - SCOPE

( EEC TREATY , ART . 5 )

4 . MEMBER STATES - OBLIGATIONS - RESTRICTION ON THE POWER TO TAX THE SALARIES OF TEACHERS OF THE EUROPEAN SCHOOLS - DIRECT EFFECT - NONE

( EEC TREATY , ART . 5 )

5 . COMMUNITY LAW - PRINCIPLES - EQUAL TREATMENT - DISCRIMINATION ON GROUNDS OF NATIONALITY - PROHIBITION - SCOPE

( EEC TREATY , ART . 7 )

Summary

1 . BY VIRTUE OF ARTICLE 1 ( 3 ) OF THE TREATY OF ACCESSION OF 1972 THE COURT HAS JURISDICTION TO GIVE A PRELIMINARY RULING ON THE INTERPRETATION OF ARTICLE 3 OF THE ACT CONCERNING THE CONDITIONS OF ACCESSION . BY VIRTUE OF SUCH JURISDICTION IT MAY INTERPRET THE MEASURES COVERED BY THAT PROVISION ONLY IN ORDER TO DETERMINE ITS SCOPE , AND NOT FOR THE PURPOSE OF DEFINING MEMBER STATES ' OBLIGATIONS UNDER SUCH MEASURES .

2 . ARTICLE 3 ( 3 ) OF THE ACT OF ACCESSION OF 1972 MUST BE INTERPRETED AS APPLYING TO THE DECISION CONCERNING THE TAX STATUS OF TEACHERS OF THE EUROPEAN SCHOOL ADOPTED ON 25 , 26 AND 27 JANUARY 1957 BY THE REPRESENTATIVES OF THE SIX ORIGINAL MEMBER STATES OF THE ECSC , WHO HAD FORMED THEMSELVES INTO THE BOARD OF GOVERNORS OF THE EUROPEAN SCHOOL IN LUXEMBOURG . IT DOES NOT , HOWEVER , ADD TO THE LEGAL SCOPE OF THAT DECISION .

3 . THE DUTIES IMPOSED ON THE MEMBER STATES BY ARTICLE 5 OF THE EEC TREATY , WHICH IS ITSELF ONLY THE EXPRESSION OF THE MORE GENERAL RULE IMPOSING ON MEMBER STATES AND THE COMMUNITY INSTITUTIONS MUTUAL DUTIES OF GENUINE COOPERATION AND ASSISTANCE , ARE DERIVED FROM THE TREATY AND CANNOT BE APPLIED TO AGREEMENTS BETWEEN THE MEMBER STATES WHICH LIE OUTSIDE THAT FRAMEWORK . THE POSITION WOULD BE DIFFERENT IF THE IMPLEMENTATION OF A PROVISION OF THE TREATIES OR OF SECONDARY COMMUNITY LAW OR THE FUNCTIONING OF THE COMMUNITY INSTITUTIONS WERE IMPEDED BY A MEASURE TAKEN TO IMPLEMENT SUCH AN AGREEMENT CONCLUDED BETWEEN THE MEMBER STATES OUTSIDE THE SCOPE OF THE TREATY . IN THAT EVENT THE MEASURE IN QUESTION COULD BE REGARDED AS CONTRARY TO THE OBLIGATIONS ARISING UNDER THE SECOND PARAGRAPH OF ARTICLE 5 OF THE EEC TREATY .

4 . MEMBER STATES MAY NOT , WITHOUT INFRINGING ARTICLE 5 OF THE EEC TREATY , SUBJECT TO DOMESTIC TAXATION THE SALARIES PAID BY THE EUROPEAN SCHOOLS TO THEIR TEACHERS , WHERE THE BURDEN OF SUCH TAXATION IS BORNE BY THE COMMUNITY BUDGET . THAT OBLIGATION DOES NOT HOWEVER PRODUCE DIRECT EFFECTS CAPABLE OF BEING RELIED UPON IN RELATIONS BETWEEN THE MEMBER STATES AND THEIR SUBJECTS .

5 . THE PRINCIPLE OF NON-DISCRIMINATION ENSHRINED IN ARTICLE 7 OF THE EEC TREATY CANNOT BE APPLIED TO SITUATIONS WHICH ARE WHOLLY INTERNAL TO A MEMBER STATE AND WHICH ARE IN NO WAY CONNECTED TO ANY SITUATIONS ENVISAGED BY COMMUNITY LAW . THAT IS THE CASE OF TEACHING STAFF WHO ARE NATIONALS OF A MEMBER STATE AND WHO ARE SECONDED BY THAT STATE TO A EUROPEAN SCHOOL SITUATED ON ITS TERRITORY . FOR THAT REASON ARTICLE 7 OF THE EEC TREATY CANNOT BE RELIED UPON TO PROHIBIT A MEMBER STATE FROM APPLYING TO THE TEACHING STAFF OF A EUROPEAN SCHOOL SITUATED ON ITS TERRITORY TAX TREATMENT WHICH IS LESS FAVOURABLE TO ITS OWN NATIONALS THAN TO THE NATIONALS OF THE OTHER MEMBER STATES .

Parties

IN CASE 44/84 ,

REFERENCE TO THE COURT UNDER ARTICLE 177 OF THE EEC TREATY AND ARTICLE 150 OF THE EAEC TREATY BY THE COMMISSIONERS FOR THE SPECIAL PURPOSES OF THE INCOME TAX ACTS ( ' SPECIAL COMMISSIONERS ' ) FOR A PRELIMINARY RULING IN THE PROCEEDINGS PENDING BEFORE THEM BETWEEN

DERRICK GUY EDMUND HURD

AND

KENNETH JONES ( HER MAJESTY ' S INSPECTOR OF TAXES )

Subject of the case

ON THE INTERPRETATION OF CERTAIN RULES OF COMMUNITY LAW , IN PARTICULAR , ARTICLE 3 OF THE ACT CONCERNING THE CONDITIONS OF ACCESSION AND THE ADJUSTMENTS TO THE TREATIES , ANNEXED TO THE TREATY CONCERNING THE ACCESSION OF THE KINGDOM OF DENMARK , IRELAND AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND TO THE EUROPEAN ECONOMIC COMMUNITY AND TO THE EUROPEAN ATOMIC ENERGY COMMUNITY , AND ARTICLES 5 AND 7 OF THE EEC TREATY , WITH REGARD TO THE LEVYING OF DOMESTIC TAXATION ON THE SALARIES PAID BY THE EUROPEAN SCHOOL AT CULHAM IN THE UNITED KINGDOM TO THE BRITISH MEMBERS OF ITS TEACHING STAFF ,

Grounds

1 BY A DECISION OF 14 FEBRUARY 1984 , WHICH WAS RECEIVED AT THE COURT ON 17 FEBRUARY 1984 , THE COMMISSIONERS FOR THE SPECIAL PURPOSES OF THE INCOME TAX ACTS ( HEREINAFTER REFERRED TO AS ' THE SPECIAL COMMISSIONERS ' ) REFERRED TO THE COURT FOR A PRELIMINARY RULING UNDER ARTICLE 177 OF THE EEC TREATY VARIOUS QUESTIONS ON THE INTERPRETATION OF CERTAIN PROVISIONS AND GENERAL PRINCIPLES OF COMMUNITY LAW , AND IN PARTICULAR ARTICLE 3 OF THE ACT CONCERNING THE CONDITIONS OF ACCESSION AND THE ADJUSTMENTS TO THE TREATIES ( HEREINAFTER REFERRED TO AS ' THE ACT OF ACCESSION ' ), ANNEXED TO THE TREATY CONCERNING THE ACCESSION OF THE KINGDOM OF DENMARK , IRELAND AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND TO THE EUROPEAN ECONOMIC COMMUNITY AND TO THE EUROPEAN ATOMIC ENERGY COMMUNITY ( HEREINAFTER REFERRED TO AS THE ' TREATY OF ACCESSION ' ), AND ARTICLES 5 AND 7 OF THE EEC TREATY . THE PURPOSE OF THOSE QUESTIONS IS TO DETERMINE WHETHER DOMESTIC INCOME TAX MAY BE LEVIED ON A SPECIFIC PART OF THE EMOLUMENTS PAID TO TEACHING STAFF OF THE EUROPEAN SCHOOLS .

2 THE QUESTIONS WERE RAISED IN PROCEEDINGS BETWEEN DERRICK GUY EDMUND HURD , HEADMASTER OF THE EUROPEAN SCHOOL AT CULHAM , OXFORDSHIRE , AND THE INSPECTOR OF TAXES . THOSE PROCEEDINGS CONCERN INCOME TAX ASSESSMENTS FOR THE TAX YEARS 1978/79 AND 1979/80 IN RESPECT OF THE AMOUNTS PAID BY THE EUROPEAN SCHOOL TO MR HURD DURING THOSE YEARS .

3 THE EUROPEAN SCHOOLS WERE SET UP IN THE VARIOUS PLACES WHERE THE INSTITUTIONS OF THE EUROPEAN COMMUNITIES ARE LOCATED : IN LUXEMBOURG , BELGIUM , ITALY , THE FEDERAL REPUBLIC OF GERMANY AND THE NETHERLANDS , AND - SINCE 1978 - IN CULHAM IN THE UNITED KINGDOM . THEIR PURPOSE IS TO PROVIDE SCHOOLING FOR THE CHILDREN OF OFFICIALS AND SERVANTS OF THE COMMUNITIES IN THEIR MOTHER TONGUES . THE SCHOOLS WERE ESTABLISHED ON THE BASIS OF TWO AGREEMENTS , NAMELY THE STATUTE OF THE EUROPEAN SCHOOL OF 12 APRIL 1957 ( UNITED NATIONS TREATY SERIES , VOLUME 443 , P . 129 ), WHICH SET UP THE FIRST EUROPEAN SCHOOL AT LUXEMBOURG , AND THE PROTOCOL OF 13 APRIL 1962 ON THE SETTING-UP OF EUROPEAN SCHOOLS WITH REFERENCE TO THE STATUTE OF THE EUROPEAN SCHOOL ( UNITED NATIONS TREATY SERIES , VOLUME 752 , P . 267 ). THOSE TWO AGREEMENTS WERE CONCLUDED BETWEEN THE SIX ORIGINAL MEMBER STATES OF THE EUROPEAN COMMUNITIES . THE UNITED KINGDOM ACCEDED TO THOSE AGREEMENTS AFTER ITS ACCESSION TO THE EUROPEAN COMMUNITIES .

4 THE BOARD OF GOVERNORS , WHICH IS COMPOSED OF THE COMPETENT MINISTERS OF THE MEMBER STATES AND A REPRESENTATIVE OF THE EUROPEAN COMMUNITIES , AND IS RESPONSIBLE UNDER THE ABOVEMENTIONED AGREEMENTS FOR THEIR IMPLEMENTATION WITH REGARD TO EDUCATIONAL , BUDGETARY AND ADMINISTRATIVE MATTERS , ADOPTED PROVISIONS CONCERNING THE RIGHTS AND OBLIGATIONS OF MEMBERS OF THE TEACHING STAFF OF THE EUROPEAN SCHOOLS . THOSE PROVISIONS ARE SET OUT IN THE REGULATIONS FOR MEMBERS OF THE TEACHING STAFF AND CONDITIONS OF EMPLOYMENT FOR PART-TIME TEACHERS OF 4 AND 5 DECEMBER 1967 , AS SUBSEQUENTLY AMENDED ( HEREINAFTER REFERRED TO AS ' THE REGULATIONS FOR MEMBERS OF THE TEACHING STAFF ' ).

5 AS REGARDS THE FINANCING OF THE SCHOOLS , ARTICLE 13 OF THE STATUTE OF THE EUROPEAN SCHOOL PROVIDES THAT THE BOARD OF GOVERNORS MUST ADOPT THE BUDGET AND , ACTING UNANIMOUSLY , APPORTION EXPENSES EQUITABLY AMONG THE CONTRACTING PARTIES . ARTICLE 26 OF THE STATUTE PROVIDES THAT THE BUDGET ADOPTED BY THE BOARD OF GOVERNORS IS TO BE FINANCED INTER ALIA BY ( I ) CONTRIBUTIONS PAID BY THE CONTRACTING PARTIES ON THE BASIS OF THE APPORTIONMENT OF EXPENSES BY THE BOARD OF GOVERNORS ; AND ( II ) SUBSIDIES FROM THE INSTITUTIONS WITH WHICH THE SCHOOL HAS CONCLUDED AGREEMENTS . THE NEGOTIATION OF SUCH AN AGREEMENT WITH THE EUROPEAN COMMUNITIES IS EXPRESSLY ORITIES AND SECONDED TO THE EUROPEAN SCHOOLS BY THOSE AUTHORITIES . THEY RECEIVE , FIRST , A SALARY PAID BY THEIR NATIONAL AUTHORITIES CALCULATED ACCORDING TO THE SALARY SCALE APPLIED IN THEIR STATE OF ORIGIN , AND , SECONDLY , AN AMOUNT PAID BY THE EUROPEAN SCHOOL , HEREINAFTER REFERRED TO AS ' THE EUROPEAN SUPPLEMENT ' . THAT EUROPEAN SUPPLEMENT CORRESPONDS TO THE DIFFERENCE BETWEEN THE NATIONAL SALARY AND A STANDARD SALARY ESTABLISHED BY THE REGULATIONS FOR MEMBERS OF THE TEACHING STAFF ON THE BASIS OF THE STAFF REGULATIONS OF OFFICIALS OF THE EUROPEAN COMMUNITIES .

7 THE LEVYING OF NATIONAL TAXATION ON TEACHERS ' SALARIES IS THE SUBJECT-MATTER OF A DECISION ( HEREINAFTER REFERRED TO AS ' THE 1957 DECISION ' ) WHICH...