EU Court of Justice Issues Ruling in Danish Beneficial Ownership Cases
Published 26 February 2019
Category: 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.
Also tagged ‘Beneficial Ownership’
Danish Parliament Strengthens Registration Requirements of Ultimate Beneficial Owners
On 2 May 2019, the Danish Parliament adopted amendments to the Danish Companies Act, which implements part of the 5th EU Anti-Money Laundering Directive.
Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AMLProposal to Strengthen the Registration of Ultimate Beneficial Owners
On 13 March 2019, the Danish Government presented a proposal for an amendment of various acts including the Danish Companies Act which implements part of the 5th EU Anti-Money Laundering Directive concerning the registration of ultimate beneficial owners.
Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AMLOther updates
New ESG KPI Report by Invest Europe
Invest Europe, the trade association representing Europe’s private equity and venture capital sector, has published its first ESG KPI report with data from 2021.
GovernanceVenture CapitalNew countries have been added to the EU tax blacklist
On 14 February 2023, the British Virgin Islands, Costa Rica, the Marshall Islands, and the Russian Federation have been added to the EU tax blacklist by the EU Council.
Cross-BorderGovernanceEU Markets in Crypto-assets Regulation (MiCA) impending
The EU Markets in Crypto-Assets Regulation (MiCA) is expected to be passed in April 2023 according to the European Parliament’s legislative updates.
Crypto-assetsMiCAELTIF 2.0 now published in the OJEU
The amendments include a broader scope of eligible assets, a simplified definition of ‘retail assets’, which include lighter retail investor requirements, and an increased market capitalization threshold.
Retail InvestorsThematic review of sustainability disclosures for funds with sustainable investment as the objective
On 3 February 2023, the Danish Financial Supervisory Authority (“DFSA”) published a thematic review of sustainability disclosures for eight funds with sustainable investments as their objective.
ComplianceDisclosure RequirementsSustainabilityELTIF 2.0 Adopted
On 15 February 2023, the European Parliament has voted in favour of an update to the EU’s Regulation for Long-Term Investment Funds (ELTIFs), also known as ELTIF 2.0.
Retail Investors