Clive Cutbill and Christopher Groves assess the tax implications of making charitable donations across EU member states.
To qualify as a charity for UK tax purposes it is necessary that the body in question is subject to the jurisdiction of the courts, and established under the law of a UK jurisdiction1. This is not an approach which is unique to the UK; many other countries have taken a similar approach.
On 27 January this year, the European Court of Justice issued its judgment in the case of Hein Persche v Finanzamt Lüdenscheid2. The judgment altered the ground rules for the tax deductibility of charitable donations throughout the European Union.
Hein Persche, a German tax adviser, had made a gift to a Portuguese charity. Mr Persche then claimed a German...