• Service: Tax, Mergers & Acquisitions, International Tax
  • Type: Regulatory update
  • Date: 6/13/2014

Netherlands - Consolidation when parent or subsidiary not Dutch resident 

June 13:  The Court of Justice of the European Union (CJEU) issued a judgment in a case on referral from the Netherlands, and concluded that Dutch law is not compliant with EU law—i.e., the freedom of establishment—in denying tax consolidation (fiscal unity):
  • Between a Dutch parent company and its Dutch sub-subsidiary (when the subsidiary is not a resident of the Netherlands, but is a German subsidiary of the Dutch parent company)
  • Between two Dutch “sister subsidiaries” (when the parent company is not a resident of the Netherlands, but is a German parent company holding three Dutch sister subsidiaries)

The judgment of the CJEU generally is in line with the earlier opinion of the Advocate General.

The identifying information of the joined cases: SCA Group Holding, C-39/13, C-40/13, and C-41/13.

Read a June 2014 report [PDF 173 KB] prepared by KPMG’s EU Tax Centre.

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