Opinion statement ECJ-TF 4/2022 on the ECJ decision of 22 September 2022 in case C-538/20, W AG, on the deductibility of foreign final losses

João Félix Pinto Nogueira; Francisco Alfredo Garcia Prats; Werner C. Haslehner; Volker Heydt; Eric Kemmeren; Georg Kofler; Michael Lang; Christiana HJI Panayi; Emmanuel Raingeard de la Blétière; Stella Raventos-Calvo; Isabelle Richelle; Alexander Rust; Rupert Shiers

doi:10.2139/ssrn.4297026

Opinion statement ECJ-TF 4/2022 on the ECJ decision of 22 September 2022 in case C-538/20, W AG, on the deductibility of foreign final losses

João Félix Pinto Nogueira, Francisco Alfredo Garcia Prats, Werner C. Haslehner, Volker Heydt, Eric Kemmeren, Georg Kofler, Michael Lang, Christiana HJI Panayi, Emmanuel Raingeard de la Blétière, Stella Raventos-Calvo, Isabelle Richelle, Alexander Rust, Rupert Shiers

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Abstract

In this CFE Opinion Statement, submitted to the EU Institutions in November 2022, the CFE ECJ Task Force comments on the ECJ decision of 22 September 2022 in W AG (Case C-538/20), on the deductibility of foreign final losses. The W AG decision makes it clear that comparability should be examined differently depending on whether the exemption is granted by domestic or tax treaty law. The CFE ECJ Task Force has reservations regarding this distinction. For the taxpayer, an exemption has the same economic effects regardless of whether it is adopted through domestic law or tax treaty law. Moreover, W AG departs from the Court’s reasoning and thinking in Lidl Belgium, which also concerned Germany and the same rules. Ideally, the Court should have made this explicit. Finally, it remains to be seen whether Marks and Spencer (Case C-446/03) is still “good law” or if W AG was one of the final nails in the coffin of the “final loss” doctrine.

Original language	English
Pages	105-110
Number of pages	6
Volume	63
DOIs	https://doi.org/10.2139/ssrn.4297026
Publication status	Published - Mar 2023

Publication series

Name	European Taxation
Publisher	International Bureau of Fiscal Documentation
No.	4
ISSN (Print)	2352-9199

Keywords

CJEU
Permanent establishment
Domestic law
Tax law
European tax law

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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1 Article

Opinion statement ECJ-TF 4/2022 on the ECJ decision of 22 September 2022 in case C-538/20, W AG, on the deductibility of foreign final losses
Nogueira, J. F. P., Prats, F. A. G., Haslehner, W. C., Heydt, V., Kemmeren, E., Kofler, G., Lang, M., Panayi, C. H., Blétière, E. R. D. L., Raventos-Calvo, S., Richelle, I., Rust, A. & Shiers, R., Mar 2023, In: European Taxation. 63, 2-3, p. 105-110 6 p.
Research output: Contribution to journal › Article

Cite this

Nogueira, J. F. P., Prats, F. A. G., Haslehner, W. C., Heydt, V., Kemmeren, E., Kofler, G., Lang, M., Panayi, C. HJI., Blétière, E. R. D. L., Raventos-Calvo, S., Richelle, I., Rust, A., & Shiers, R. (2023). Opinion statement ECJ-TF 4/2022 on the ECJ decision of 22 September 2022 in case C-538/20, W AG, on the deductibility of foreign final losses. (2-3 ed.) (pp. 105-110). (European Taxation; No. 4). https://doi.org/10.2139/ssrn.4297026

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abstract = "In this CFE Opinion Statement, submitted to the EU Institutions in November 2022, the CFE ECJ Task Force comments on the ECJ decision of 22 September 2022 in W AG (Case C-538/20), on the deductibility of foreign final losses. The W AG decision makes it clear that comparability should be examined differently depending on whether the exemption is granted by domestic or tax treaty law. The CFE ECJ Task Force has reservations regarding this distinction. For the taxpayer, an exemption has the same economic effects regardless of whether it is adopted through domestic law or tax treaty law. Moreover, W AG departs from the Court{\textquoteright}s reasoning and thinking in Lidl Belgium, which also concerned Germany and the same rules. Ideally, the Court should have made this explicit. Finally, it remains to be seen whether Marks and Spencer (Case C-446/03) is still “good law” or if W AG was one of the final nails in the coffin of the “final loss” doctrine.",

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author = "Nogueira, {Jo{\~a}o F{\'e}lix Pinto} and Prats, {Francisco Alfredo Garcia} and Haslehner, {Werner C.} and Volker Heydt and Eric Kemmeren and Georg Kofler and Michael Lang and Panayi, {Christiana HJI} and Bl{\'e}ti{\`e}re, {Emmanuel Raingeard de la} and Stella Raventos-Calvo and Isabelle Richelle and Alexander Rust and Rupert Shiers",

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doi = "10.2139/ssrn.4297026",

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Nogueira, JFP, Prats, FAG, Haslehner, WC, Heydt, V, Kemmeren, E, Kofler, G, Lang, M, Panayi, CHJI, Blétière, ERDL, Raventos-Calvo, S, Richelle, I, Rust, A & Shiers, R 2023 'Opinion statement ECJ-TF 4/2022 on the ECJ decision of 22 September 2022 in case C-538/20, W AG, on the deductibility of foreign final losses' European Taxation, no. 4, 2-3 edn, pp. 105-110. https://doi.org/10.2139/ssrn.4297026

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T1 - Opinion statement ECJ-TF 4/2022 on the ECJ decision of 22 September 2022 in case C-538/20, W AG, on the deductibility of foreign final losses

AU - Nogueira, João Félix Pinto

AU - Prats, Francisco Alfredo Garcia

AU - Haslehner, Werner C.

AU - Heydt, Volker

AU - Kemmeren, Eric

AU - Kofler, Georg

AU - Lang, Michael

AU - Panayi, Christiana HJI

AU - Blétière, Emmanuel Raingeard de la

AU - Raventos-Calvo, Stella

AU - Richelle, Isabelle

AU - Rust, Alexander

AU - Shiers, Rupert

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N2 - In this CFE Opinion Statement, submitted to the EU Institutions in November 2022, the CFE ECJ Task Force comments on the ECJ decision of 22 September 2022 in W AG (Case C-538/20), on the deductibility of foreign final losses. The W AG decision makes it clear that comparability should be examined differently depending on whether the exemption is granted by domestic or tax treaty law. The CFE ECJ Task Force has reservations regarding this distinction. For the taxpayer, an exemption has the same economic effects regardless of whether it is adopted through domestic law or tax treaty law. Moreover, W AG departs from the Court’s reasoning and thinking in Lidl Belgium, which also concerned Germany and the same rules. Ideally, the Court should have made this explicit. Finally, it remains to be seen whether Marks and Spencer (Case C-446/03) is still “good law” or if W AG was one of the final nails in the coffin of the “final loss” doctrine.

AB - In this CFE Opinion Statement, submitted to the EU Institutions in November 2022, the CFE ECJ Task Force comments on the ECJ decision of 22 September 2022 in W AG (Case C-538/20), on the deductibility of foreign final losses. The W AG decision makes it clear that comparability should be examined differently depending on whether the exemption is granted by domestic or tax treaty law. The CFE ECJ Task Force has reservations regarding this distinction. For the taxpayer, an exemption has the same economic effects regardless of whether it is adopted through domestic law or tax treaty law. Moreover, W AG departs from the Court’s reasoning and thinking in Lidl Belgium, which also concerned Germany and the same rules. Ideally, the Court should have made this explicit. Finally, it remains to be seen whether Marks and Spencer (Case C-446/03) is still “good law” or if W AG was one of the final nails in the coffin of the “final loss” doctrine.

KW - CJEU

KW - Permanent establishment

KW - Domestic law

KW - Tax law

KW - European tax law

U2 - 10.2139/ssrn.4297026

DO - 10.2139/ssrn.4297026

M3 - Preprint

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T3 - European Taxation

SP - 105

EP - 110

BT - Opinion statement ECJ-TF 4/2022 on the ECJ decision of 22 September 2022 in case C-538/20, W AG, on the deductibility of foreign final losses

ER -

Opinion statement ECJ-TF 4/2022 on the ECJ decision of 22 September 2022 in case C-538/20, W AG, on the deductibility of foreign final losses

Abstract

Publication series

Keywords

UN SDGs

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CEID-CRCFL: Católica Research Centre for the Future of Law

Research output

Opinion statement ECJ-TF 4/2022 on the ECJ decision of 22 September 2022 in case C-538/20, W AG, on the deductibility of foreign final losses

Cite this