The modification of a vertical tax consolidation group into a horizontal tax consolidation group does not end the tax consolidation regime

On 14 May 2020, the Court of Justice of the European Union (“CJEU”) ruled on the Luxembourg tax consolidation regime and took a very positive decision for the Luxembourg corporate taxpayers. In its ruling, the CJEU rejects the interpretation and the application of the Luxembourg tax consolidation regime made by the tax authorities.

The position taken by the CJEU is in line with the arguments we developed extensively in an article published in the Revue de Droit Fiscal entitled “L'intégration fiscale : besoin de clarifications suite aux évolutions et controverses récentes” and in our ATOZ Insights dated February 2019.