Skatteverket v Memira Holding AB

European Union – Corporation tax. For the purposes of the assessment of the finality of the losses of a non-resident subsidiary, within the meaning in Marks & Spencer plc v Halsey (Inspector of Taxes): C-446/03[2006] STC 237, the fact that the subsidiary's member state of establishment did not allow the losses of one company to be transferred, in the event of a merger, to another company liable for corporation tax, whereas such a transfer was provided for by the member state in which the parent company was established in the event of a merger between resident companies, was not decisive, unless the parent company demonstrated that it was impossible for it to deduct those losses by ensuring, in particular by means of a sale, that they were fiscally taken into account by a third party for future tax periods. The Court of Justice of the European Union so held, among other things, in a preliminary ruling in proceedings concerning the possibility of the taxpayer company deducting from its corporation tax the losses of a sub-subsidiary established in another member state.

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