Bevola and another company v Skatteministeriet

European Union – Companies. Article 49 of the Treaty on the Functioning of the European Union had to be interpreted as precluding legislation of a member state under which it was not possible for a resident company which had not opted for an international joint taxation scheme to deduct from its taxable profits losses incurred by a permanent establishment in another member state, where the losses attributable to that non-resident permanent establishment became definitive, which was for the national court to ascertain. The Court of Justice of the European Union so held in a preliminary ruling in proceedings concerning the Danish tax authorities' refusal to allow the taxpayer company to deduct from its taxable income the losses incurred by its Finnish establishment.

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