Timac Agro Deutschland GmbH v Finanzamt Sankt Augustin

European Union – Freedom of establishment. The Court of Justice of the European Union gave a preliminary ruling deciding, among other things, that art 49 of the Treaty on the Functioning of the European Union should be interpreted as not precluding a member state's tax regime, such as that at issue in the main proceedings, under which, in the event of transfer by a resident company to a non-resident company within the same group of a permanent establishment situated in another member state, the losses previously deducted in respect of the establishment transferred were reincorporated into the taxable profit of the transferring company where, under a double taxation convention, the income of such a permanent establishment was exempt from tax in the member state in which the company to which that establishment belonged had its seat.