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Gabriël van Gelder
EC Tax Review
Volume 27, Issue 5 (2018) pp. 260 – 266
https://doi.org/10.54648/ecta2018028
Abstract
On 25 October 2017, the European Court of Justice ruled in the Polbud-case that a cross-border conversion is permitted on the basis of the freedom of establishment, even if the converted company does not conduct any economic activities in the new home Member State. On 25 April 2018, the European Commission proposed new company law rules to enable companies to make best of business opportunities in the EU’s Single Market and to ensure that cross-border conversions, mergers and divisions are accompanied by adequate safeguards against abuse. This directive explicitly refers to the Polbud-case. In this article the Polbud-judgment is discussed in the broader context of cross-border conversions. Furthermore, the proposal of the European Commission is discussed and the antitax abuse provision thereof.
Extract
In a recent judgment the Grand Chamber of Court of Justice of the European Union (CJEU) has given new impetus to its case law on the impact of the fundamental freedoms of the Treaty on the Functioning of the European Union (TFEU) on domestic tax systems as regards the cross-border relief of ‘final losses’ suffered abroad. The present contribution looks into the different phases of development of the relevant CJEU decisions and submits a first evaluation of the new judgment and its potential consequences.
EC Tax Review