Skatteverket v Holmen AB

Income tax – Corporation tax. The concept of final losses of a non-resident subsidiary, within the meaning set out in Marks & Spencer plc v Halsey (Inspector of Taxes): C-446/03 [2006] STC 237 (M&S), did not apply to a sub-subsidiary unless all the intermediate companies between the parent company applying for group relief and the sub-subsidiary sustaining losses that could be regarded as final were not established in the same member state. The Court of Justice of the European Union so held, among other things, in a preliminary ruling in proceedings concerning the possibility of the respondent taxpayer company of deducting from its corporation tax the losses of a sub-subsidiary established in another member state.

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