Annulment of the Fairness Tax by the Constitutional Court – Practice Note issued
For recall, on 1 March 2018, the Constitutional Court annulled the Fairness Tax but decided to maintain its effects for the assessment years 2014 to 2018, except in case of redistributions of dividends (see our newsflash in this respect). On 3 September 2018, the Belgian tax administration released a Practice Note commenting the content and
CJEU judgment in Argenta Spaarbank on compatibility of interest payment deduction rules with Parent-Subsidiary Directive
On 26 October 2017, the EU’s Court of Justice (CJEU) ruled on the compatibility of the Belgian interest payment deduction rules with the Parent-Subsidiary Directive (PSD) in the case C-39/16 Argenta Spaarbank vs. Belgische Staat. The case concerns the Belgian interest payment deduction rules laid down in Article 198(10) of the 1992 Income Tax Code
Belgian Fairness Tax: Status Quaestionis (update)
As a recall, by request sent to the Constitutional Court, a Belgian taxpayer company has filed in January 2014 an action for annulment of the so-called Belgian ‘Fairness Tax’. This action comprises four different causes of action each of them including different headings or arguments: European law: freedom of establishment and Parent-Subsidiary Directive; Constitutional law:
CJEU rules on subject-to-tax requirement of Parent-Subsidiary Directive
On 8 March 2017, the Court of Justice of the European Union (“CJEU”) rendered its Judgment in Wereldhave Belgium and Others concerning the interpretation of the subject-to-tax requirement of the Parent-Subsidiary Directive (“PSD”) (C-448/15). The CJEU’s interpretation of the PSD’s subject-to-tax requirement is more severe than a mere formal subjective tax liability. However, the precise
Amendments to the Parent-Subsidiary Directive implemented under Belgian tax law
On 1 December 2016, a Bill was published in the official Belgian Gazette implementing into Belgian tax law two amendments to the Parent-Subsidiary Directive. The first amendment to the Parent-Subsidiary Directive aims at tackling situations which would result in ‘double non-taxation’ by introducing a rule against hybrid instruments. Under this new rule, dividends received by
EU PSD – Council adopts anti-abuse clause
In a press release of 27 January 2015, the Council has disclosed its amendments to the EU Parent-Subsidiary Directive (PSD) (2011/96/EU). Objective of the amendments The Council amended the PSD, adding a binding anti-abuse clause to prevent tax avoidance and aggressive tax planning by corporate groups. The aim is to stop the PSD from being misused for tax avoidance and to
Update: Member States agree to amend Parent-Subsidiary Directive
The European Union’s (EU) 28 Finance Ministers agreed, on June 20, 2014, to amend the EU’s Parent –Subsidiary Directive (Directive), addressing the effects of tax arbitrage resulting from EU Member States’ varying tax treatments of hybrid loans. The Member States have agreed that the Directive’s benefits should not result in ‘double non-taxation,’ that is, income going untaxed
EU Member States agree to amend the EU PSD to tackle hybrid loan arrangements
On 20 June 2014, the EU’s Council of Economic and Finance (ECOFIN) Ministers took place in Luxembourg. ECOFIN agreed amongst others on the amendments to the Parent-Subsidiary directive (PSD) and adopted conclusions on the report of the Code of Conduct Group on Business Taxation. Proposed amendments on the Parent – Subsidiary directive The ECOFIN agreed
