Source: All England Reporter
Publisher Citation: [2013] All ER (D) 344 (Feb)
Court: Court of Justice of the European Union (Fourth Chamber)

Judges Bay Larsen (acting President of the Fourth Chamber), Bonichot (Rapporteur), Toader and Jarasiunas

Judgment Dates: 21 February 2013


European Union - Freedom of establishment - Principle of non-discrimination - Direct internal taxation - Finnish national law allowing parent company following merger to deduct losses incurred by resident subsidiary - Finnish national law precluding such deductibility in case of non-resident subsidiary - Whether provisions of relevant EU treaty precluding national legislation permitting such difference in treatment - Whether principle of freedom of establishment applying - Whether such difference in treatment justified - Applicable law for calculation of losses of non-resident subsidiary - Treaty on the Functioning of the European Union, arts 49, 54.

The Case

European Union Freedom of establishment. The Court of Justice of the European Union made a preliminary ruling concerning the interpretation of arts 49 and 54 of the Treaty on the Functioning of the European Union in the course of proceedings brought by A Oy, a company governed by Finnish law, against a decision of the Finnish Central Tax Board that A Oy could not, in the context of a merger with a Swedish subsidiary, deduct from tax that subsidiary's losses.

Practice Areas

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