Are the Swedish Cross-Border Group Deduction Rules compatible with European Union Law?
(2015) HARN60 20151Department of Business Law
- Abstract
- The thesis regards the Swedish group deduction rules and whether the rules are compatible with EU law. The rules are analyzed in relation to both primary law, the fundamental freedoms established in the TFEU and secondary law, the Parent-Subsidiary Directive (PSD). The author has established four requirements in the Swedish provisions that could possibly be in breach of EU law, namely; (1) the direct ownership requirement, (2) the need to calculate the loss according to two sets of rules, (3) the requirement that no business activity of a related company can be pursued in the state of the non-resident subsidiary after its liquidation and, (4) the size of the deduction may not exceed a positive result of the Swedish parent company.
The... (More) - The thesis regards the Swedish group deduction rules and whether the rules are compatible with EU law. The rules are analyzed in relation to both primary law, the fundamental freedoms established in the TFEU and secondary law, the Parent-Subsidiary Directive (PSD). The author has established four requirements in the Swedish provisions that could possibly be in breach of EU law, namely; (1) the direct ownership requirement, (2) the need to calculate the loss according to two sets of rules, (3) the requirement that no business activity of a related company can be pursued in the state of the non-resident subsidiary after its liquidation and, (4) the size of the deduction may not exceed a positive result of the Swedish parent company.
The author concludes that a group contribution does not fall within the scope of the PSD since it does not qualify as a "profit distribution". Moreover, the Swedish rules are incompatible with the freedom of establishment since the rules constitute non-justifiable restrictions. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/5434983
- author
- Tärnklint, Sofie LU
- supervisor
- organization
- course
- HARN60 20151
- year
- 2015
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Group contributions, Tax, Group deductions, Group reliefs, EU, Fundamental Freedoms, Parent-Subsidiary Directive, Profit distributions, Swedish tax law.
- language
- English
- id
- 5434983
- date added to LUP
- 2015-06-12 15:57:12
- date last changed
- 2015-06-12 15:57:12
@misc{5434983, abstract = {{The thesis regards the Swedish group deduction rules and whether the rules are compatible with EU law. The rules are analyzed in relation to both primary law, the fundamental freedoms established in the TFEU and secondary law, the Parent-Subsidiary Directive (PSD). The author has established four requirements in the Swedish provisions that could possibly be in breach of EU law, namely; (1) the direct ownership requirement, (2) the need to calculate the loss according to two sets of rules, (3) the requirement that no business activity of a related company can be pursued in the state of the non-resident subsidiary after its liquidation and, (4) the size of the deduction may not exceed a positive result of the Swedish parent company. The author concludes that a group contribution does not fall within the scope of the PSD since it does not qualify as a "profit distribution". Moreover, the Swedish rules are incompatible with the freedom of establishment since the rules constitute non-justifiable restrictions.}}, author = {{Tärnklint, Sofie}}, language = {{eng}}, note = {{Student Paper}}, title = {{Are the Swedish Cross-Border Group Deduction Rules compatible with European Union Law?}}, year = {{2015}}, }