# C_2020240EN.01001201.xml

| 20.7.2020 | EN | Official Journal of the European Union | C 240/12 |
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20.7.2020

EN

Official Journal of the European Union

C 240/12

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Judgment of the Court (Second Chamber) of 14 May 2020 (request for a preliminary ruling from the Cour administrative — Luxembourg) — B and Others v Administration des contributions directes

(Case C-749/18) (1)

(Reference for a preliminary ruling - Articles 49 and 54 TFEU - Freedom of establishment - Tax legislation - Corporate taxes - Parent companies and subsidiaries - Vertical and horizontal tax integration)

(2020/C 240/15)

Language of the case: French

Referring court

Cour administrative

Parties to the main proceedings

Applicant: B and Others

Defendant: Administration des contributions directes

Operative part of the judgment

| 1. | Articles 49 and 54 TFEU must be interpreted as precluding the legislation of a Member State which, while allowing vertical tax integration between a resident parent company or a permanent establishment, in that Member State, of a non-resident parent company and its resident subsidiaries, does not allow horizontal tax integration between the resident subsidiaries of a non-resident parent company; |
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1.

Articles 49 and 54 TFEU must be interpreted as precluding the legislation of a Member State which, while allowing vertical tax integration between a resident parent company or a permanent establishment, in that Member State, of a non-resident parent company and its resident subsidiaries, does not allow horizontal tax integration between the resident subsidiaries of a non-resident parent company;

| 2. | Articles 49 and 54 TFEU must be interpreted as precluding the legislation of a Member State which has the effect of compelling a parent company established in another Member State to dissolve an existing vertical tax integration between one of its subsidiaries and a certain number of its resident sub-subsidiaries in order to allow that subsidiary to undertake a horizontal tax integration with other resident subsidiaries of that parent company, even though the resident integrating subsidiary remains the same and dissolution of the vertical tax integration before the end of the minimum duration of the integration, laid down by the national legislation, entails the individual correcting taxation of the companies concerned; |
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2.

Articles 49 and 54 TFEU must be interpreted as precluding the legislation of a Member State which has the effect of compelling a parent company established in another Member State to dissolve an existing vertical tax integration between one of its subsidiaries and a certain number of its resident sub-subsidiaries in order to allow that subsidiary to undertake a horizontal tax integration with other resident subsidiaries of that parent company, even though the resident integrating subsidiary remains the same and dissolution of the vertical tax integration before the end of the minimum duration of the integration, laid down by the national legislation, entails the individual correcting taxation of the companies concerned;

| 3. | The principles of equivalence and effectiveness must be interpreted as not precluding the legislation of a Member State relating to a tax integration scheme which provides that any request to benefit from such a scheme must necessarily be submitted to the competent authority before the end of the first tax year for which application of that scheme is sought. |
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3.

The principles of equivalence and effectiveness must be interpreted as not precluding the legislation of a Member State relating to a tax integration scheme which provides that any request to benefit from such a scheme must necessarily be submitted to the competent authority before the end of the first tax year for which application of that scheme is sought.

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(1)  OJ C 93, 11.3.2019.

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