Tax ruling: The Court of Justice of the European Union puts an end to the Spanish saga of the amortization of the financial goodwill resulting from the acquisition of stakes of at least 5% in a "foreign company" by a company taxable in Spain, by rejecting the appeals against the judgments of the Court of First Instance of the European Union which confirmed, some of them on referral, the decision of the European Commission qualifying this tax mechanism as unlawful aid and incompatible with the internal market (Deutsche Telekom / Banco Santander / Sigma Alimentos Exterior / Prosegur Compañia de Seguridad / Duty Free Group / Santusa)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. On October 6, 2021, the Court of Justice, in its Grand Chamber, put an end to this contentious saga regarding the amortization of the financial goodwill resulting from the acquisition of a stake of at least 5% in a "foreign company" by a company taxable in Spain. The Court dismisses eight appeals against judgments of the General Court from 2018. In doing so, the Court of Justice confirmed the Commission's characterization of the Spanish tax rules at issue as unlawful state aid and incompatible with the internal market (decision of January 12, 2011, C 45/07 (ex NN 51/07, ex CP 9/07), as corrected). These cases again concern probably the most problematic

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  • Sheppard, Mullin, Richter & Hampton (Brussels)

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Jacques Derenne, Tax ruling: The Court of Justice of the European Union puts an end to the Spanish saga of the amortization of the financial goodwill resulting from the acquisition of stakes of at least 5% in a "foreign company" by a company taxable in Spain, by rejecting the appeals against the judgments of the Court of First Instance of the European Union which confirmed, some of them on referral, the decision of the European Commission qualifying this tax mechanism as unlawful aid and incompatible with the internal market (Deutsche Telekom / Banco Santander / Sigma Alimentos Exterior / Prosegur Compañia de Seguridad / Duty Free Group / Santusa), 6 October 2021, Concurrences N° 1-2022, Art. N° 105658, pp. 139-142

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