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Court could make flagging out easier
Page 10
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• by Guy Sheppard A forthcoming decision by the European Court of Justice is expected to make flagging out on the Continent easier for UK hauliers.
Dutch lawyer Han Vallenduuk has represented more than 30 UK operators who have flagged out in The Netherlands. He says a more relaxed approach is likely because of a landmark case concerning German haulier Andreas Hoves.
Hoves appealed to the European Court after German tax authorities demanded more than £50,000 in road tax for 16 trucks he had registered in Luxembourg. Each vehicle had a permit for cabotage in Germany.
Vallenduuk says opinions expressed during the hearing by the court's Advocate-General suggest there will be sympathy for Hoves and flagging out in general when its decision is announced, probably within the next three weeks: "In about 90% of cases the court just follows what the AdvocateGeneral has given as his opinion. I think this will be a step towards liberalisation."
He adds that the crucial point of the Hoves' case was that the Advocate-General did not rule out the possibility of vehicles being given a regular base in a country where they are used for cabotage. The Advocate-General also felt the German authorities should have contacted their counterparts in Luxembourg about Hoves before demanding the road tax from him.
Although most of the tax advantages of flagging out on the Continent have disappeared for UK hauliers over the past two years. Vallenduuk believes there are still legal benefits: "It is very risky having a transport company in the UK because the punishments are harsher."