CJEU – Recent Developments in Direct Taxation 2019

1. S. 166The Cases

1.1. The Danish Beneficial Ownership cases

The Danish cases to be presented at the 2019 conference are a number of joined cases concerning the question whether Denmark may refuse exemption from withholding tax in a situation, where a company resident in another EU Member State receives dividends or interest paid by a company resident in Denmark, if 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. The cases concern situations which took place before Denmark had implemented the relevant provisions on abuse in Directive 90/434 and Directive 2015/121/EU.

The Danish beneficial ownership cases were first presented at the 2016 conference. On 1 March 2018 Advocate General Kokott presented her opinion in these cases, which was presented at the 2018 conference. The Grand Chamber of the Court delivered its two judgments in the Danish beneficial ownership cases on 26 February 2019.

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 im...