Commission v. Belgium is the first CJEU judgment on the
interpretation of the Anti-tax Avoidance Directive (ATAD). Addressing the
seemingly narrow issue of Belgium’s alleged failure to implement double
taxation relief for CFC income, the case provides broad guidance on the meaning
of the ‘minimum level of protection’ under Article 3 ATAD, the relationship
between special and general rules, the dual and balancing objectives of the
ATAD to combat tax avoidance while preventing new barriers to the Internal
Market, and the interpretation of the specific controlled-foreign company rules
in Articles 7 and 8 ATAD. The case of Commission v. Belgium has also drawn
quite some attention because AG Kokott’s Opinion has addressed a lingering
concern: Was the adoption of the ATAD even covered by the European Union’s
legislative competences?