Nordcurrent group: interpretation of the anti-abuse provision in the EU parent-subsidiary directive – opinion statement ECJ-TF 1/2025 on the CJEU decision of 3 April 2025 in Nordcurrent group UAB (Case C-228/24)

In this CFE Opinion Statement, submitted to the EU Institutions in May 2025, the CFE ECJ Task Force comments on the CJEU’s decision of 3 September 2024 in Nordcurrent Group UAB (Case C-228/24), in which the Court concluded that the notion of abuse requires both an objective element – namely the existence of a non-genuine arrangement – and a subjective element – namely the intention to obtain a tax advantage that defeats the object or purpose of the Directive. Further, in deciding whether an arrangement is a non-genuine arrangement, all facts and circumstances have to be taken into account, employing a wide time horizon. Regarding the tax advantage, it does not suffice to take a look at the participation exemption in isolation. The overall tax burden of the investment has to be taken into consideration.