login
login
Image header Agence Europe
Europe Daily Bulletin No. 9404
Contents Publication in full By article 16 / 24
GENERAL NEWS / (eu) eu/court of justice

German legislation on deductibility of losses by subsidiaries in another member state restricts freedom of establishment

Luxembourg, 11/04/2007 (Agence Europe) - The Court of Justice, in a judgment delivered on 29 March, held that the German tax system is not in compatibility with Community law, in that it does not allow companies to write off against tax any losses made by subsidiaries established in another member state. Since losses incurred by subsidiaries based in Germany are deductible, this situation discourages German companies from setting up subsidiaries in other EU countries, and this is a...

Contents

THE DAY IN POLITICS
GENERAL NEWS