On 24 June 2026, the European Commission published two packages aimed at simplifying various corporate tax directives. The first package, a so-called “Tax Omnibus Package” proposes changes to the Parent-Subsidiary Directive, the Interest and Royalties Directive, and the Merger and Dispute Resolution Directives. The second package is intended to serve as a “DAC Recast,” under which certain thresholds for reporting obligations will be modified or abolished, corporate groups subject to Pillar 2 will generally be exempted from DAC6, and other amending directives related to DAC (the Mutual Assistance Directive) will be adapted or consolidated. The packages are designed to modernise the EU's direct tax framework, make it more efficient and better adapt it to the current economic environment, whi ...
The European Court of Justice held in its decision Memira Holding AB issued on 19 June 2019 that when assessing whether the losses of a non-resident subsidiary are final within the meaning of its judgment in Marks & Spencer on 13 December 2005 (C‑446/03), the fact that, in the event of a merger, the subsidiary’s Member State of establishment does not does not allow the losses of one company to be transferred to another company liable for corporation tax, is not decisive, unless the parent company can demonstrate that it is impossible for it to deduct those losses through ensuring that - in particular by means of a sale- the losses are fiscally taken into account by a third party for future tax periods.
