Opinion of the Advocate General — ECLI:EU:C:2002:528
Date: 2002-09-24
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Right of establishment;Taxation;Approximation of laws
Procedure: Reference for a preliminary ruling
Origin: Netherlands

SUMMARY — CASE C-168/01 
Summary of the Judgment 
Approximation of laws — Common system of taxation applicable in the case of parent 
companies and subsidiaries of different Member States — Directive 90/435 — Costs of a 
parent company established in one Member State incurred in connection with its holding 
in the capital of its subsidiaries established in other Member States — Deductibility 
subject to the condition that such costs contribute to making profits taxable in the first 
Member State — Not permissible having regard to Article 52 of the Treaty (now, after 
amendment, Article 43 EC) 
(EC Treaty, Art. 52 (now, after amendment, Art. 43 EC); Council Directive 90/435) 
Directive 90/435 on the common system of 
taxation applicable in the case of parent 
companies and subsidiaries of different 
Member States, interpreted in the light of 
Article 52 of the EC Treaty (now, after 
amendment, Article 43 EC) precludes a 
national provision which, when determin­
ing the tax on the profits of a parent 
company established in one Member State, 
makes the deductibility of costs in con­
nection with that company's holding in the 
capital of a subsidiary established in 
another Member State subject to the con­
dition that such costs be indirectly instru­
mental in making profits which are taxable 
in the Member State where the parent 
company is established. 
(see para. 43 and operative part) 
I - 9410