X AB v Skatteverket

European Union – Freedom of establishment. The Court of Justice of the European Union gave a preliminary ruling, deciding that art 49 on the Treaty on the Functioning of the European Union should be interpreted as meaning that it did not preclude the tax legislation of a member state which, in principle, exempted capital gains on holdings for business purposes from corporation tax and, by the same token, excluded the deduction of capital losses on such holdings, even where those capital losses were due to currency losses.

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