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In the European Union, donations may be tax deducible. In 2008 the European Court of Justice held that:
(Case C-318/07: Hein Persche v Finanzamt Lüdenscheid)
1. Donations by individuals resident in one Member State to organisations based in and recognised as charitable by another Member State concern a movement of capital within the meaning of Article 56 of the EC Treaty;
2. For Member States which give tax reliefs on donations to organisations recognised as charitable and located in their own Member State, it is contrary to Articles 56 and 58(3) not to allow a taxpayer the opportunity to prove that charitable organisations based in other Member States also fulfil the requirements for tax relief;