Key CJEU decisions on the beneficial owner concept under the Interest and Royalties Directive and the Parent-Subsidiary Directive
The Court of Justice of the European Union (CJEU) has rendered two key decisions on the interpretation of the beneficial owner concept in relation to the Interest and Royalties Directive and the Parent-Subsidiary Directive. The CJEU concluded that it is for the referring courts to assess whether the arrangements under review constitute an abuse under EU law, particularly taking into account the existence of conduit companies. It is noteworthy that the CJEU’s decision substantially differs from the Advocate General’s Opinion on various matters, such as the relevance of the OECD work and the requirement for national tax authorities to identify the person they deem to be the beneficial owner in cases of abuse. Nevertheless, the CJEU provides much needed guidance on the interpretation of this beneficial owner concept, and it appears that the concept of abuse under EU law continues to evolve.
You can read KPMG’s EU Tax Centre’s full commentary on these decisions here.
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