Clifford Chance

German anti-treaty shopping rule violates EU law

16 July 2018

Following the previous landmark decision on 20 December 2017, the European Court of Justice concluded in its decision dated 14 June 2018 (C-440/17) that not only the former version of the anti-treaty shopping rule section 50d para 3 German Income Tax Act (applicable until 2011), but also the current version is not in line with the EU Parent Subsidiary Directive and the Freedom of Establishment.

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