Laga was co-counsel in joint cases before Constitutional Court

Court confirms Walloon regional tax established on the equity of waste management organisations as unconstitutional

12 March 2018

In a recent decision, the Constitutional Court confirmed that the Walloon regional tax established on the equity on waste management organisations, was unconstitutional and annulled the tax (Constitutional Court, joint cases n° 6580 and 6582). In both cases Laga acted as co-counsel for the parties requesting the annulment of the tax.

Following an earlier judgement on a comparable Flemish regional tax, the Court confirmed that a regional tax, established on the equity of said organisations, is a violation of the constitutional powers attributed to the Walloon region. The waste management organisations subjected to the tax are active across the entire Belgian territory and all three regions. Their equity consists of reserves coming from operations in all three regions (Flanders, Brussels and the Walloon Region). The fact that the tax took into account the number of inhabitants in the Walloon region, was adjudged to be irrelevant. The activities and therefore the equity of the waste management organisations does not correspond directly to the number of inhabitants of a region. For that reason, the Constitutional Court ruled that there was no direct link between the equity of said organisations and the Walloon Region, leading to an unconstitutional tax.

Within Laga, the Tax controversy solutions team and the Indirect tax team joined efforts to achieve this positive outcome. The Laga team consisted of Partners Annick Visschers and Danny Stas as well as Senior Associates Filip Smet and Julie Engelen.