CJEU - Recent Developments in Direct Taxation 2024

S. 201. ExxonMobil Holding Norway AS-EFTA Court

1.1. Introduction

In principle, group consolidation is not available for tax purposes in Norway. However, according to the Norwegian Tax Act (NTA) section 10-2 et seq., income may be transferred between affiliated companies through group contributions. Group contributions (both paid and accrued) are deductible for tax purposes by the payer company as taxable income for the recipient company, provided that certain requirements are met. See section III for further information about the requirements.

The ExxonMobil Holding Norway AS (EMHN) case deals with the question of whether the requirement for granting a group contribution from a Norwegian company to a non-resident company was fulfilled, including whether there was a final loss and whether the application of the Norwegian group contribution rules, in this specific case, is in accordance with Articles 31 and 34 of the EEA Agreement when ExxonMobil Holding Norway AS granted a group contribution of 900 MNOK to ExxonMobil Danmark ApS (EMD). The case deals with the income assessment for FY 2012. The final loss provision in NTA section 10-5 was included in the Norwegian Tax Act in December 2021 w...