Judgment of the Court (Second Chamber) 5 October 1988

In Case 357/87 REFERENCE to the Court under Article 177 of the EEC Treaty by the Finanzgericht (Finance Court) Baden-Württemberg for a preliminary ruling in the proceedings pending before that court between

THE COURT (Second Chamber) composed of: O. Due, President of Chamber, K. Bahlmann and T. F. O'Higgins, Judges, Advocate General: J. L. Cruz Vilaça Registrar: B. Pastor, Administrator

after considering the observations submitted on behalf of Firma Albert Schmid, the plaintiff in the main proceedings, by H. Glashoff and H. Kühle, of Schurmann & Partner, tax advisers, Frankfurt am Main, the Commission, by its Legal Adviser, J. Sack, the Government of the Federal Republic of Germany, by M. Seidel, Ministerialrat at the Ministry of Economic Affairs,

having regard to the Report for the Hearing and further to the hearing on 14 June 1988,

after hearing the Opinion of the Advocate General delivered at the sitting on 6 July 1988,

gives the following

Judgment

The first question

The second question

Costs

1 Language of the Case: German.