23 December 2016 EU Court of Justice rules Danish thin capitalization rule breaches EU freedom of establishment The European Union (EU) Court of Justice (ECJ) ruled on December 21, that a Danish thin capitalization rule is in breach of the freedom of establishment of Article 49 of the Treaty on the Functioning of the European Union (TFEU). The ECJ held that Section 11(6) constituted a tax advantage. The fact that a parent company was not granted such a tax advantage with respect to cross-border loans made it less attractive to exercise its freedom of establishment. Document ID: 2016-2218 |
