Derouin: Tax Treaties and Regulation No. 1408/71 – Double or Nothing?

Abstract

This article considers the European Court of Justice (ECJ) decision of 3 April 2008 in Derouin, ECJ, 3 April 2008, Case C-103/06, Philippe Derouin v. Union pour le recouvrement des cotisations de sécurité sociale et d’allocations familiales de Paris – Région parisienne (Urssaf de Paris – Région parisienne). Discussed, inter alia, in L. Adamietz and M. Schreier, Europäisches Wirtschafts- & Steuerrecht (2008), pp. 195-196; M-C. Bergerès, “La CSG, la CRDS, le droit communautaire et les conventions de lutte contre les doubles impositions”, Revue de droit fiscal (2008) Comm. 349, pp. 25-27; and D. Gutmann, “Derouin v Urssaf de Paris – Région parisienne: to what extent may EU Member States convert their social security contributions into taxes for tax treaty purposes?”, British Tax Review (2008), pp. 625-627. with emphasis on the importance of the ruling for social security contributions, the 1968 France-UK tax treaty (the Treaty) and Regulation No. 1408/71 (the Regulation). Council Regulation (EC) No. 1408/71 of 14 June 1971 on the application of social security schemes to employed persons, self-employed persons and to members of their families moving within the Community (OJ 1971, L 149/2, OJ, English Special Edition 1971 (II), p. 416). In Derouin, the version amended and updated by Council Regulation (EC) No. 118/97 of 2 December 1996 (OJ 1997, L 28/1) as amended by Council Regulation (EC) No. 1606/98 of 29 June 1998 (OJ 1998, L 209/1) applied. In this respect, it should be noted that the Treaty and the Regulation follow different rules regarding the allocation of taxation rights and the designation of the applicable national social security legislation, respectively.