CJEU - Recent Developments in Direct Taxation 2021

S. 2361. Introduction

The present contribution analyses the judgments BJ (15 July 2020, C-241/20) and Commission v. Belgium and Magnetrol) (16 September 2021, C-337/19) and the pending cases Orde van Vlaamse Balies (C-694/20), Pharmacie Populaire (C-52/21 & C-53/21) and VP Capital (C-414/21). Also filed during the covered period was the case AirbnB Ireland (C-674/20), dealing with the application of EU directives on electronic services (Directive 2000/31/EC and Directive 2006/123/EC) to procedural tax obligations adopted by the Brussels region and imposed on platforms acting as intermediaries for accommodation services. For additional comments, we refer to the chapter on the Italian case in this book (a similar case was also filed by the Italian Council of State).

2. Commission v. Belgium (Magnetrol International) (C-337/19)

2.1. Facts and legal background

Until 2004, multinational enterprises could secure an advance ruling on profit allocation and/or the arm’s length character of pricing arrangements regarding cross-border related-party relationships.

Belgian tax authorities intended to ensure that only arm’s length profits of a Belgian entity of a multinational group would be subject to tax...