EU Tax Alert 207

CJ judgment on whether Dutch interest deduction limitation rule is in line with EU law

(X BV v Staatssecretaris van Financiën, Case C-585/22)

On 4 October 2024, the CJ delivered its judgment in the case X BV v Staatssecretaris van Financiën (Case C-585/22) where it found that the Dutch interest deduction limitation rule of Article 10a Corporate Income Tax Act 1969 (CITA) is not in breach of EU law, as it pursues the legitimate objective of combatting tax fraud and tax evasion.

CJ judgment in the landmark Apple State aid case

(Commission v Ireland and Others, Case C‑465/20 P)

On 10 September 2024, the CJ delivered its final judgment in the case Commission v Ireland and Others (Case C‑465/20 P). In its judgment, the Court set aside the 2020 ruling of the General Court and confirmed the 2016 decision of the European Commission, which had concluded that two Irish subsidiaries of the Apple group had received unlawful State aid from Ireland from 1991 to 2014.

CJ judgment regarding legal professional privilege in the context of an EoIR under the DAC

(Ordre des avocats du Barreau de Luxembourg, Case C-432/23)

On 26 September 2024, the CJ delivered its judgment in the case Ordre des avocats du Barreau de Luxembourg (C432/23). The case concerns the issue of whether and, if so, under what conditions, a tax administration may seek disclosure of information from a lawyer in relation to its client in the context of an exchange of information on request (EoIR) under Council Directive 2011/16/EU (DAC).

CJ judgment on the compatibility of DAC6 reporting regime for cross-border arrangements with the EU law

(Belgian Association of Tax Lawyers and Others v Premier ministre/Eerste Minister, Case C-623/22)

On 29 July 2024, the CJ delivered its judgment in the case Belgian Association of Tax Lawyers and Others v Premier ministre/Eerste Minister (Case C-623/22). The case concerns the compatibility of the mandatory reporting regime for cross-border arrangements introduced under DAC6, with various EU law principles, including equality, non-discrimination, legality in criminal matters, legal certainty, and the right to respect for private life. In its judgment, the CJ upheld the validity of DAC6 in line with AG Emiliou's Opinion.

EU Commission initiates infringement procedure against the Netherlands on taxation of foreign investment funds

On July 2024, the EU Commission initiated an infringement procedure against the Netherlands for failing to extend a dividend tax reduction scheme to foreign investment funds, which are comparable to Dutch investment funds. The Commission considers that the relevant remittance reduction scheme (afdrachtsvermindering) restricts the free movement of capital by a discriminatory treatment of investment funds of other EU/EEA States.

CJ judgment regarding VAT exemption for management ‘special investment funds’ in relation to defined benefit pension funds

(Joint cases X, C-639/22 and others)

On 5 September 2024, the CJ issued its judgment in the joint cases X (C-639/22), Fiscale Eenheid Achmea BV (C-640/22), Y (C-641/22), Stichting Pensioenfonds voor Fysiotherapeuten (C-642/22), Stichting BPL Pensioen (C-643/22) and Stichting Bedrijfstakpensioensfonds voor het levensmiddelenbedrijf (C-644/22). The cases concern the VAT exemption for the management of ‘special investment funds’ in relation to pension fund management services.