CJEU – Recent Developments in Direct Taxation 2018

1. S. 42The cases

1.1. The Danish Benefit Ownership cases

The first Danish cases to be presented at the 2018 conference are a number of cases concerning the question whether Denmark may refuse exemption from withholding tax where a company resident in another EU Member State receives dividends or interest paid by a company resident in Denmark and the recipient company is considered by the Danish tax authorities to be a mere conduit company, which is not the beneficial owner of the dividends or interest payments. These beneficial ownership cases concern situations which occurred before Denmark had implemented the relevant provisions on abuse in Directive 90/434 and Directive 2015/121/EU.

The cases were first presented at the 2016 conference. On 1 March 2017 Advocate General Kokott presented her opinion in these cases. Cases C-115, C-118 and C-119 concern a refusal by the Danish tax authorities to grant an exemption from withholding tax in relation to interest payments in situations where Danish rules implementing Directive 2003/49 were applicable. The remaining cases concern situations where an exemption from withholding tax on dividend payments made by companies resident in Denmark would n...