Tax & Legal

In her Opinion, the Advocate General suggested the European Court of Justice decide that Luxembourg has fulfilled its obligation to transpose the Anti-Tax-Avoidance-Directive (ATAD) into national law by including so called securitization companies in the list of 'financial undertakings' for which the interest limitation rule set forth in Article 4 ATAD is not applicable.

Gains realised by financial undertakings resident in third countries on the disposal of shares are fully exempt from corporation tax. In these proceedings,the Hessian Tax Court considered whether the exclusion from the benefit of the participation exemption under Section 8b (7) of the Corporation Tax Act also applied to credit institutions and financial services institutions not resident in the EU/EEA.