LexGo

EU Court of Justice rules on the limits of anti-abuse rules
12/06/2018

  • On 20 December 2017, the Court of Justice of the European Union (CJEU) decided on two cases involving German anti-abuse legislation that denies a (partial) exemption or refund of withholding tax on distributions made by German companies to foreign parent companies, confirming the Court’s previous jurisprudence.
  • The CJEU analysed the conformity of the German anti-abuse provision in regard to both the restrictions imposed by the EU Parent-Subsidiary Directive and the freedom of establishment, finding the German provision too restrictive.
  • The CJEU reconfirms that taxpayers are free to rely on their EU freedoms when structuring investments as long as the underlying contractual arrangements are not “wholly artificial arrangements” which do not reflect economic reality and the purpose of which is to unduly obtain a tax advantage.
  • The case law of the CJEU provides for clear guidelines regarding the design and interpretation of anti-abuse provisions in an EU context, contributing to legal certainty in the post-BEPS era.
  • On 4 April 2018, the German Ministry of Finance issued official guidance in response to the decision of the CJEU, but it remains to be seen how the German tax authorities will respond in practice.

To read the full article, please click here

Related : Atoz Luxembourg ( Mr. Olivier R. Hoor ,  Mr. Andreas Medler )

Mr. Olivier R. Hoor Mr. Olivier R. Hoor
Partner
oliver.hoor@atoz.lu
Mr. Andreas Medler Mr. Andreas Medler
Director
andreas.medler@atoz.lu

All articles European Law

Lastest articles European Law

Aide à l'innovation : à quoi les start-up peuvent-elles prétendre ?
08/10/2018

Dans un contexte d’évolution constante en matière entreprenariale et face à l’émer...

Read more

EU Commission finds no illegal State Aid in the McDonald's Case
20/09/2018

On 19 September 2018, the EU Commission announced its decision in the McDonald's State Aid investigations. According&n...

Read more

CJEU in Truvada case: no SPC for A+B (unless "the claims relate necessarily and specifically to t...
26/07/2018

Today (25.07), the Court of Justice of the European Union ("CJEU") has rendered a long awaited decision in a dis...

Read more

Fidelity Funds vs the Danish Ministry – CJEU rules in favour of taxpayers
26/06/2018

Yesterday (21 June 2018), the European Court ruled in favour of a Fidelity investment fund that had suffered Danish withho...

Read more

Lastest articles by Mr. Olivier R. Hoor

EU Commission finds no illegal State Aid in the McDonald's Case
20/09/2018

On 19 September 2018, the EU Commission announced its decision in the McDonald's State Aid investigations. According&n...

Read more

Upcoming German tax law changes relevant to real estate investments
18/09/2018

On 1 August 2018, the German Ministry of Finance published the amended draft bill of the Annual Tax Act 2018 which will be...

Read more

New reporting requirements on transactions with related parties
02/08/2018

On 7 May 2018, the Luxembourg tax authorities released a circular introducing for Luxembourg corporate taxpayers ...

Read more

Luxembourg implements the Anti-Tax Avoidance Directive (ATAD)
21/06/2018

Today (20.06), the draft law implementing the EU Anti-Tax Avoidance Directive (“ATAD”) was released. While the...

Read more

Lastest articles by Mr. Andreas Medler

Upcoming German tax law changes relevant to real estate investments
18/09/2018

On 1 August 2018, the German Ministry of Finance published the amended draft bill of the Annual Tax Act 2018 which will be...

Read more

LexGO Network