Finanzamt Köln Altstadt v Schumacker

Facts

Mr Roland Schumacker argued he should get extra tax benefits in Germany. He was Belgian, lived in Belgium and worked in Germany. He paid German income tax, but was denied benefits that resident taxpayers received. Germany argued that it was hard to determine the income received by non-residents in their state of residence to assess deductions.

Judgment

The Court of Justice held that a non-resident taxpayer who received some almost all income in a state of employment was objectively comparable to someone who did the same work there. It followed that Mr Schumacker should be entitled to the tax benefits.