02/September/2022
NL Tax Alert: Supreme Court (SC) raises preliminary questions to the ECJ on interest deductibility rules (article 10a) following the Lexel AB case
Today, the SC ruled that the application of article 10a CITA 1969, in cases where intercompany loans are used to finance the external acquisition of shares, is in its view compatible with EU law. However, considering the ECJ’s decision in the Lexel AB case (C-484/19) and how its implications are perceived in Dutch tax literature, the SC doubts whether and to which extent article 10a can be applied if the intercompany loan was taken out under arm’s length conditions. The SC therefore raises preliminary questions to the ECJ.
Source: Rechtspraak.nl