CJEU – Recent Developments in Direct Taxation 2019

1. S. 196Introduction

The present chapter will examine three distinct cases from Luxembourg. The first two, B and others (C-749/18), and what has been inaccurately named “Berlioz 2” (C-246/19) cases are currently pending before the CJEU and both are references for preliminary rulings sent by the Luxembourg Administrative Court. The FIAT judgment (T-755/15) is a recent judgment issued by the General Court on the thorny issue of the relationship between tax rulings, and more specifically, the Arm’s Length Principle (ALP) with State aid rules.

2. B and Others (C-749/18)

The first Luxembourg case concerns the request for a preliminary ruling from the Administrative Court of Luxembourg to the European Court of Justice (hereinafter: “CJEU”) lodged on 30 November 2018. The case is currently pending before the CJEU.

The case concerns the Luxembourg fiscal unity regime or tax integration or tax consolidation, as provided in Article 164bis of the Luxembourg law on income taxation (“LIR”) in the years at issue, 2013 and 2014, and its compatibility with EU law. The Luxembourg fiscal unity regime, provides the benefit that different entities can aggregate their results and the parent company will be the ...