«(Freedom to provide services – Lottery tickets – Amount won in a game of chance held in another Member State – Income tax – Tax on games of chance – Special regime in the Åland Islands)»

Freedom to provide services – Restrictions – Fiscal legislation – Taxation of winnings from games of chance – Exemption restricted to winnings from games conducted in national territory – Not permissible (Art. 49 EC) Article 49 EC prohibits a Member State's legislation under which winnings from games of chance organised in other Member States are treated as income of the winner chargeable to income tax, whereas winnings from games of chance conducted in the Member State in question are not taxable.see para. 27, operative part

JUDGMENT OF THE COURT (Fifth Chamber) 13 November 2003 (1)

((Freedom to provide services – Lottery tickets – Amount won in a game of chance held in another Member State – Income tax – Tax on games of chance – Special regime in the Åland Islands))

In Case C-42/02,

REFERENCE to the Court under Article 234 EC by the Ålands förvaltningsdomstolen (Finland) for a preliminary ruling in the proceedings brought before that court by

on the interpretation of Article 49 EC,

THE COURT (Fifth Chamber),,

composed of: C.W.A. Timmermans, President of the Fourth Chamber, acting as President of the Fifth Chamber, D.A.O. Edward (Rapporteur) and P. Jann, Judges,

Advocate General: C. Stix-Hackl,

after considering the written observations submitted on behalf of:

having regard to the Report for the Hearing,

after hearing the oral observations of the Finnish Government, represented by E. Bygglin, the Belgian Government, represented by P. De Wael, acting as Agent, the Commission, represented by K. Simonsson, and the EFTA Surveillance Authority, represented by E. Wright, at the hearing on 23 January 2003,

after hearing the Opinion of the Advocate General at the sitting on 10 April 2003,

gives the following

Observations submitted to the Court

The Court's reply

On those grounds,

THE COURT (Fifth Chamber),

in answer to the question referred to it by the Ålands förvaltningsdomstolen by order of 5 February 2002, hereby rules:

Timmermans

Edward

Jann

Delivered in open court in Luxembourg on 13 November 2003.

R. Grass

V. Skouris

Registrar

President