Judgment No. 1491
THE COMPLAINTS AND THE APPLICATIONS TO INTERVENE ARE DISMISSED.
"The Director-General granted the complainants leave not to appeal to the Joint Advisory Appeals Board and they have come straight to the Tribunal. Their complaints are therefore receivable."
complaint; receivability of the complaint; direct appeal to tribunal; executive head; acceptance; condition
"CERN has but one obligation under R IV 2.02: to refund taxes paid by officials 'on remuneration and benefits received from the organization'. [...] CERN is not to blame for the resulting increase in the rates of taxation of the complainants' total income. All it can do is pay back to French citizens on its staff the amounts they have paid in tax on their international earnings: it exerts control neither over the tax brackets and rates set by French law, nor over the method of reckoning their total income, which is just a feature of the French manner of processing income tax."
Organization rules reference: CERN STAFF REGULATION R IV 2.02
organisation's duties; domestic law; staff regulations and rules; salary; rate; privileges and immunities; tax; refund
The rule against discrimination "holds good only where staff who are in like case both in law and in fact have not been treated alike. Under CERN's agreement with France its staff are exempt in that country from direct taxation on their earnings from the organization. But the provision does not apply to French citizens, who do not enjoy exemption from tax on their earnings from CERN and are therefore, by reason of the terms of an agreement that CERN is bound by, not in the same position in law as staff of other nationalities."
nationality; general principle; equal treatment; domestic law; privileges and immunities; tax
In respect of earnings from other sources than CERN, "the staff who are not French do fare better because only their other income counts for the purpose of reckoning rates of income tax and it therefore falls within lower tax brackets, whereas for the French citizens the whole of their income counts for that purpose. But the difference in treatment is not of the organization's making: it is due solely to the working of French tax law."
nationality; equal treatment; domestic law; rate; tax; refund