19/04/2023 (Agence Europe) – On Wednesday, 19 April, the European Commission decided to bring Belgium before the Court of Justice of the EU for failing to correctly transpose the Anti-Tax Avoidance Directive (Directive (EU) 2016/1164). According to the European Commission, Belgian law does not allow taxpayers to deduct from their taxes the tax already paid by a controlled foreign company in the state of tax residence. Yet, according to the directive, a parent company of a multinational company located in one Member State may be taxed on the profits made by a ‘controlled foreign company’ in another Member State. This is possible when the tax paid by the controlled foreign company is less than half of the tax that would be paid in the Member State of the parent company (CFC rule). The company should receive a tax credit for all taxes that it has paid abroad. (AD)