Gift aid applies for a passport: Hein Persche v Finanzamt Ludenscheid (C-318/07)

The lack of a common understanding of what a charity is, andthe general refusal of relief for cross-border gifts, can distortthe charitable "market" by favouring local charities over thoseestablished in other countries. Territorial restrictions ontax incentives frequently add to the administrative costs ofgiving to charity, by forcing donors to use local charitiesas conduits for cross-border gifts. They may even dissuade apotential donor from giving at all. All of this may be aboutto change—at least within the EU. We now have the opinionof Advocate General Mengozzi in the Persche case, which concernsthe argument that territorial restrictions on tax incentivesfor charitable giving contravene the provisions of the EU Treatyregarding the free movement of capital.