The Resource AURES holdings a.s. (C-405/18) at the intersection of cross-border loss relief, corporate exit taxation and dual residency mismatches

AURES holdings a.s. (C-405/18) at the intersection of cross-border loss relief, corporate exit taxation and dual residency mismatches

Label
AURES holdings a.s. (C-405/18) at the intersection of cross-border loss relief, corporate exit taxation and dual residency mismatches
Title
AURES holdings a.s. (C-405/18) at the intersection of cross-border loss relief, corporate exit taxation and dual residency mismatches
Creator
Subject
Language
eng
Summary
This article examines the European Court of Justice decision (ECJ) of 27 February 2020 in Case C-405/18 AURES Holdings a.s. on the application of the Marks & Spencer final losses doctrine to dual resident companies that transfer their treaty residence (place of effective management) to another Member State. The ECJ applied a two-step comparability analysis based on Timac Agro and Bevola to exclude current not-subject-to-tax emigration losses (not linked to the ability-to-pay of the immigrated company) from its preferred approach to always take final losses into account somewhere in the internal market. The immigration state was not forced to apply its taxing powers asymmetrically over emigration losses to prevent a conflict with the principle of fiscal territoriality in exit tax cases and international tax practice against base erosion and profit shifting (BEPS). If the immigration state still sovereignly decides to take these losses into account pursuant to a bilateral tax treaty, Article 9(b) of the Anti-Tax Avoidance Directive (ATAD) on dual residency mismatches prevents dual loss utilization
Citation source
In: Intertax. - Alphen aan den Rijn. - Vol. 49 (2021), no. 2 ; p. 166-185
http://library.link/vocab/creatorName
Goetz, E.M
Geographic coverage
  • European Union
  • Europe
Language note
English
http://library.link/vocab/subjectName
  • exit tax
  • place of effective management
  • ECJ case law
  • ATAD
  • cross-border loss relief
  • dual residence
  • hybrid mismatch
  • conversion
Label
AURES holdings a.s. (C-405/18) at the intersection of cross-border loss relief, corporate exit taxation and dual residency mismatches
Instantiates
Publication
Label
AURES holdings a.s. (C-405/18) at the intersection of cross-border loss relief, corporate exit taxation and dual residency mismatches
Publication

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