CJEU - Recent Developments in Direct Taxation 2025

1. Introduction

Cross-border taxation disputes within the European Union frequently arise from divergent interpretations of bilateral tax treaties. The administrative case A420209524, A00539-25/19 between UAB Maxima LT (-“the Applicant”) as successor to Lincoln Land Erste B.V. and the Latvian State Revenue Service (Valsts ieņēmumu dienests, SRS) exemplifies the legal and procedural complexities surrounding the application of Council Directive (EU) 2017/1852 on tax dispute resolution mechanisms. The Applicant disagreed with the decision of the State Revenue Service and submitted a request for a preliminary ruling to the Court of Justice of the European Union.

This chapter analyses the legal implications of the case, focusing on the interpretation of ‘double taxation’ and the procedural obligations of Member States under the Directive. The central legal issue examined concerns the extent to which a S. 114Member State is legally required to establish an advisory committee under Directive (EU) 2017/1852 in cases where a Mutual Agreement Procedure (MAP) fails to resolve a cross-border tax dispute. This inquiry further explores whether the concept of double taxation, as defined within the Direct...