Germany - Recognition of Final Losses of Permanent Establishments
- C. Kahlenberg
- European Taxation, 2014 (Volume 54), No 9
- 5 August 2014
Cross-border loss offsetting, an ever-evolving area of EU tax law that the ECJ is frequently asked to address, presents a daunting challenge for professional consultants. The question of whether or not a loss is final is essential because, if so, the Member State of the head office has to recognize the loss under EU law. The following summarizes and comments on a recent decision of the German Federal Tax Court of 2 February 2014 in this area.