COURT OF JUSTICE OF THE EU / Taxation

Tax authorities should not assume that subsidiaries of third-country companies necessarily facilitate tax evasion

Brussels, 19/01/2017 (Agence Europe)

The French rules to fight tax fraud are against EU law, as they are based on an assumption that companies controlled from a third country automatically pursue the objective of tax evasion, Advocate General Juliane Kokott concluded on Thursday 19 January, before the Court of Justice of the EU.

This case (C-6/16) concerns the French company Euro Stockage, a subsidiary of Luxembourg company Enka, which is owned by the Cypriot company Waverley Star Investments, itself wholly controlled by the...