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Interest Deduction Limitations in Sweden Post-Lexel: The Relevance of the Free Movement of Capital

Brokelind, Cécile LU and Kleist, David (2023) In European Taxation 63(6). p.234-246
Abstract
In Lexel (Case C-484/19), the Swedish interest deduction limitation rules were found to be in breach of article 49 of the TFEU on the freedom of establishment, as they presumed abusive practices even in respect of arm’s length-based transactions. The present article puts the case into context and highlights follow-up issues raised before lower Swedish tax courts in the context of loan transactions involving associated companies in third countries. Indeed, recent ECJ case law indicates that transactions between associated companies in the European Union and in third countries are protected under article 63 of the TFEU on the free of movement of capital.
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author
and
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
European Taxation
volume
63
issue
6
pages
234 - 246
publisher
IBFD
external identifiers
  • scopus:85165248731
ISSN
0014-3138
language
English
LU publication?
yes
id
527f55b0-7ba8-4c92-856d-a52fd9cd0cfe
date added to LUP
2023-06-29 19:24:30
date last changed
2023-09-19 09:38:34
@article{527f55b0-7ba8-4c92-856d-a52fd9cd0cfe,
  abstract     = {{In Lexel (Case C-484/19), the Swedish interest deduction limitation rules were found to be in breach of article 49 of the TFEU on the freedom of establishment, as they presumed abusive practices even in respect of arm’s length-based transactions. The present article puts the case into context and highlights follow-up issues raised before lower Swedish tax courts in the context of loan transactions involving associated companies in third countries. Indeed, recent ECJ case law indicates that transactions between associated companies in the European Union and in third countries are protected under article 63 of the TFEU on the free of movement of capital.}},
  author       = {{Brokelind, Cécile and Kleist, David}},
  issn         = {{0014-3138}},
  language     = {{eng}},
  month        = {{06}},
  number       = {{6}},
  pages        = {{234--246}},
  publisher    = {{IBFD}},
  series       = {{European Taxation}},
  title        = {{Interest Deduction Limitations in Sweden Post-Lexel: The Relevance of the Free Movement of Capital}},
  volume       = {{63}},
  year         = {{2023}},
}