This article addresses the ECJ’s decision in Timac Agro (Case C-388/14) on the compatibility, with EU law, of a German regime that allowed a German company to deduct losses incurred by its PE in Austria subject to recapture in certain circumstances. The authors integrate the decision into a systematic analysis of the ECJ’s case law in the field of tax losses, which has long been criticized by prominent scholars as being plagued by profound inconsistencies.