Analysis: “Silcompa: strengthening the case for preventing double taxation” by Philippe Heeren
In Silcompa (C-95/19), the European Court of Justice has strengthened the case for preventing double taxation in the context of excise duty. If a request for mutual assistance in the recovery of excise duty would result in double taxation, the requested authority could be entitled to deny that request. In its judgment, the Court confirms the primacy of the division of powers in the Excise Directive.
Silcompa shipped ethyl alcohol, which is subject to excise duty, from Italy to Greece. Goods that are subject to excise duty only become dutiable upon their release for consumption. During the production, processing, holding, and movement of these products, the duty is suspended. The underlying idea is to levy the excise duty only in t