The 3D I Case: Useful Clarification from the Court on the Boundaries of the EU Merger Directive - EC Tax Review View The 3D I Case: Useful Clarification from the Court on the Boundaries of the EU Merger Directive by - EC Tax Review The 3D I Case: Useful Clarification from the Court on the Boundaries of the EU Merger Directive 22 4

With its judgment in the 3D I case, the Court has issued a useful reminder of the statutory limits of the EU Merger Directive. Although the tax deferral regime provided by the Directive is the standard for corporate reorganizations in the EU, it does not go beyond the temporary non-recognition of gains realized because of reorganization. Most notably, it does not concern the elimination of economic double taxation resulting from the transfer of assets into a corporate subsidiary.

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