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

Competition law and algorithms: the Luxembourg Competition Council exempts a booking platform in ...
14/06/2018

Algorithms is the hot topic in competition law. In June 2017, the OECD published a paper on the risk of collusion in the u...

Competition law and algorithms: the Luxembourg Competition Council exempts a booking platform in the taxi sector Read more

EU Legislative Proposals to Facilitate the Cross-Border Distribution of Investment Funds
08/05/2018

On March 12th 2018, in the context of the Capital Markets Union action plan, the European Commission issued legislati...

EU Legislative Proposals to Facilitate the Cross-Border Distribution of Investment Funds Read more

Brexit : Update
02/05/2018

On 23 March 2018, the European Council approved the text of the Draft Agreement on the UK’s withdrawal from the EU a...

Brexit : Update Read more

European Commission publishes State aid decision on Amazon
27/02/2018

On 26 February 2018, the Commission published the non-confidential version of its October 2017 decision ordering...

European Commission publishes State aid decision on Amazon Read more

Lastest articles by Mr. Olivier R. Hoor

BEPS-compliant IP regime enters into force
17/05/2018

On 19 April 2018, the law introducing the new Luxembourg BEPS-compliant Intellectual Property (IP) regime was published. W...

Read more

New France-Luxembourg Double Tax Treaty
28/03/2018

On 20 March, 2018, France and Luxembourg signed a new Double Tax Treaty (“DTT”), which was released yesterday....

Read more

New IP regime passed by the Parliament
23/03/2018

Today (22th March), the draft law introducing the new Luxembourg BEPS-compliant Intellectual Property (IP) regime was pass...

Read more

Lastest articles by Mr. Andreas Medler

LexGO Network