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Publishers Abstract:
Within the multilevel legal system of the European Union (EU), tax law has traditionally remained a well guarded stronghold of the Member States. Their competences, however, need to be performed consistently with supranational law in general and the fundamental freedoms enshrined in the EC Treaty in particular. The Centro di Musicologia Walter Stauffer (hereafter Centro Stauffer) is a foundation established under Italian law endowing scholarships to enable young Swiss citizens to be instructed in classical production methods of stringed instruments in Cremona (Italy). In Italy, Centro Stauffer is recognized as having a charitable status due to its non-profit making objectives. Had it been established in Germany it could also have acquired the status of a charitable organization under German law with all the advantageous consequences attached to this. Accordingly, the German authorities taxed Centro Stauffer's income from renting out the property located in Germany. The European Court of Justice held that the German restriction violates the EC Treaty.
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