Sample Letter Of Culinary Goals

European issues

Topic oral internal competition for the NAS in 2004

Freedom of establishment and freedom to provide services

Concerning natural persons and legal persons, freedom of establishment and freedom to provide services are defined respectively in Articles 52 to 48 43 ex ex 58 and ex Articles 49 to 59 to 55 ex 66 EC. Freedom of establishment includes the right to self-employment, the establishment of enterprises and their management in any member state. The free delivery service for the services against payment for services industrial, commercial, craft and professional occupations. These two freedoms must allow the opening up of the common market on the economy. These freedoms are complementary. Indeed, freedom of establishment for the provision of goods and services by companies moving to another Member State. Meanwhile, the free provision of service is staying in his home state. First, identify what these freedoms. Then you also consider a possible trade between these two forms of economic activity as a function of the tax involved.


I) Freedom of establishment and freedom to provide services

A) Freedom of establishment

1 - Modalities for the Establishment

a) To transfer a principal

Freedom of establishment consists, among others, to transfer an establishment in another Member State. The transfer of the establishment must be based on the laws of the State newly invested.

b) For an extension of companies

Different modalities for extending the mother company are possible:
- an agency, corporation mandated
- a branch: without legal personality even though she has autonomy Management
- subsidiary corporation dependent on the parent company.

2 - The presence of permanent establishment

a) infrastructure for a permanent

is the permanence of the service and not the infrastructure that determines whether service delivery or freedom of establishment. "The temporary nature of the provision does not exclude the possibility that the service provider, under the Treaty, to develop in the Member State of reception, of a certain infrastructure (including a desk, cabinet or study) to the extent that such infrastructure is necessary for the accomplishment of the service in question. " (ECJ 30 November 1995 Gebharth) .
Being home for a professional activity involves the fact that fall under the regime of freedom of establishment.


b) Submission to the control of the parent

A distinction must be independent intermediary and secondary schools. It takes a fixed contract and the establishment appraisse as an extension of the parent (ECJ 22 November 1978 Somafer).


B) Free delivery

1 - Independence of the service delivery
It is made independently of any other good or service.

2 - Temporary nature

Do not sustainable implementation coupled with an ongoing activity if it comes to freedom of establishment.




II) Criteria for choosing between the two freedoms

A) The tax applies

1 - Freedom of establishment

is the host Member State, which administers the tax system.

2 - The free delivery service

The country of origin that applies its tax system.

B) The benefit of freedoms

1 - Plan alternative

A contract can be found in the two regimes. The free delivery service may be required if the service is governed by other freedoms. Art 51 ex 61 indicates a special regime for banking and insurance transport.

2 - The two types of people benefit

Individuals and corporations are benefiting.