Source: All England Reporter
Publisher Citation: [2012] All ER (D) 340 (Oct)
Court: Court of Justice of the European Union (Seventh Chamber)
Judge:

Judges Malenovsky (acting President), von Danwitz (Rapporteur) and Svaby

Judgment Dates: 18 October 2012

Catchwords

European Union - Taxation - Internal taxes - Belgian law deeming merger by acquisition to be liquidation of subsidiary, thus avoiding obligation to avoid economic double taxation of distributed profits - Whether concept of 'liquidation in European law to be interpreted as meaning that dissolution in such circumstances considered to be liquidation - Council Directive (EC) 90/435, art 4(1).

The Case

European Union Taxation. The Court of Justice of the European Union gave a preliminary ruling concerning the interpretation of the concept of 'liquidation' in art4(1) of Council Directive (EC) 90-435 (on the common system of taxation applicable in the case of parent companies and subsidiaries of different member states) in the context of the obligation to avoid economic double taxation of distributed profits and found that the dissolution of a company in the context of merger by acquisition could not be considered to be a liquidation for the purposes of that directive.

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