EU Court of Justice Issues Ruling in Danish Beneficial Ownership Cases

Published 26 February 2019

PrintCategory: Taxation / VAT

On 26 February 2019, the EU Court of Justice (CJEU) issued judgments containing preliminary rulings in the Danish beneficial ownership cases.

The CJEU states in the judgments that there is a general principle of anti-abuse in EU law which applies even where there are no domestic or agreement-based provisions providing for such anti-abuse rules. Proof of an abusive practice requires the presence of objective circumstances (e.g. achieving an unfair advantage, such as an unfair tax advantage) and a subjective element (e.g. the fact that a structure has been put in place mainly to achieve such unfair advantage).

Next step: The CJEU judgments will likely have a big impact on international group structures and will also contribute to the interpretation of the anti-abuse principles of EU law and the “beneficial owner” concept.

See the CJEU judgment in the dividend cases here.

See the CJEU judgment in the interest cases here.

Tags:  Beneficial OwnershipDanish Regulation


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