In a recent Opinion at the Court of Justice, Advocate General Medina stated that a joint fund, in this case, the European Development Fund which is not part of the EU budget, has to be understood as being inherently cross-border in nature. Thus, the free movement of capital (Article 63 TFEU) applies, as unlawful differentiated tax treatment would otherwise be the result.
This case, still be to be decided, intersects the areas of development cooperation (parallel competence of both the EU and it’s Member States, with the doctrine of pre-emption not applying), income tax treatment, and internal market freedoms.
Her Opinion in Case C-15/22, Finanzamt G (Development aid projects) is available at the following link: https://lnkd.in/eSb67fwK
The judgment of the Court of Justice (Court of Justice of the European Union) will be delivered later this calendar year.
Graham Butler