On 4 June 2009, the European Court of Justice (“ECJ”) rendered, by reasoned `order`, its decision in the KBC Bank NV (C-439/07) and Beleggen, Risicokapitaal, Beheer NV (C-499/07) cases. At stake was the application of the participation exemption on dividends stemming from participations in subsidiaries inside or outside the EU.

Essentially, the ECJ confirmed the Cobelfret decision and refers the other questions (with the exception of the fourth) to the domestic Courts which should solve the case based on former case-law. This decision explicity refers to the procedure embedded in article 104 (3) indent 1 of the Rules of Procedure of the ECJ. According to these rules the ECJ may give its decision by reasoned order where a question referred to the ECJ is identical to a question on which the ECJ has ruled, or where the answer to such a question may be clearly deduced from existing case-law.

Sven Verschueren
Senior Consultant
De Kleetlaan 2, B-1831 Diegem (Brussels), Belgium
Office: +32 (0)2 774 9062
Fax: +32 (0)2 774 9387
sven.verschueren@be.ey.com

Steven J Claes
Partner
De Kleetlaan 2, B-1831 Diegem (Brussels), Belgium
Office: +32 (0)2 774 9420
Fax: +32 (0)2 774 9387
steven.claes@be.ey.com