In the Société Générale case, the CJEU’s Grand Chamber has to decide on cross-border loss relief for non-residents. The court should take a restrictive approach, limiting the Sofina case law to the elimination of discriminatory treatment. Otherwise, it would put severe pressure on Member States’ budgets. It would also jeopardize the coherence of the case law and reach a logically untenable decision. The CJEU should therefore clarify that the case law applies at most to losses arising in the source state and to foreign losses that would have had to be taken into account had they been incurred by a resident of the source state.
EC Tax Review