New Perspective on the Taxation of CFCs in Third Countries?

This article examines the case of X-GmbH v. Finanzamt Stuttgart-Körperschaften (Case C-135/17). For this purpose, it provides a short overview of the relevant German CFC legislation. Subsequently, it examines Advocate General Mengozzi’s Opinion and discusses his conclusions in light of the EU Anti-Tax Avoidance Directive (2016/1164). It concludes that the ECJ’s decision might have consequences for the interpretation of articles 7 and 8 in third-country situations.