CELEX: C2007/096/06
Language: en
Date: 2007-04-28 00:00:00
Title: Case C-347/04: Judgment of the Court (Second Chamber) of 29 March 2007 (reference for a preliminary ruling from the Finanzgericht Köln — Germany) — Rewe Zentralfinanz eG, as universal legal successor of ITS Reisen GmbH v Finanzamt Köln-Mitte (Freedom of establishment — Corporation tax — Immediate offsetting of losses incurred by parent companies — Losses stemming from write-downs to the book value of shareholdings in subsidiaries established in other Member States)

28.4.2007   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 96/4
            
         Judgment of the Court (Second Chamber) of 29 March 2007 (reference for a preliminary ruling from the Finanzgericht Köln — Germany) — Rewe Zentralfinanz eG, as universal legal successor of ITS Reisen GmbH v Finanzamt Köln-Mitte
   (Case C-347/04) (1)
   
   (Freedom of establishment - Corporation tax - Immediate offsetting of losses incurred by parent companies - Losses stemming from write-downs to the book value of shareholdings in subsidiaries established in other Member States)
   (2007/C 96/06)
   Language of the case: German
   Referring court
   Finanzgericht Köln
   Parties to the main proceedings
   
      Applicant: Rewe Zentralfinanz eG, as universal legal successor of ITS Reisen GmbH
   
      Defendant: Finanzamt Köln-Mitte
   Re:
   Reference for a preliminary ruling — Finanzgericht Köln — Interpretation of Article 52 (now, after amendment, Article 43 EC), Article 58 (now Article 48 EC) and Article 73b (now Article 56 EC) — National legislation on corporation tax limiting the set-off by resident parent companies of losses resulting from the writing down of holdings in subsidiary companies resident for tax purposes in other Member States
   Operative part of the judgment
   In circumstances such as those of the main proceedings, in which a parent company holds shares in a non-resident subsidiary which give it a definite influence over the decisions of that foreign subsidiary and allow it to determine its activities, Article 52 of the EC Treaty (now, after amendment, Article 43 EC) and Article 58 of the EC Treaty (now Article 48 EC) preclude legislation of a Member State which restricts the right of a parent company which is resident in that State to deduct for tax purposes losses incurred by that company in respect of write-downs to the book value of its shareholdings in subsidiaries established in other Member States.
   
      (1)  OJ C 273, 6.11.2004.