scholarly journals The freedom of cross-border funding in multinational groups and European Union law

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Thomas W. Kollruss

Abstract Member states often try to restrict cross-border debt financing in multinational groups. The pending Swedish case, Lexel AB, C-484/19, is a prime example. The Swedish tax law operates with a vague legal concept of tax abuse that is completely inappropriate to identify tax-abusive financing and disadvantages only foreign groups. This paper analyzes the Swedish rules on interest limitation in affiliated groups (C-484/19), which refers to substantial tax benefits, against the background of the European Union law and the finance theory. In this regard, a breach of European Union law can be found. This also applies to the current Swedish tax law. Moreover, the interest limitation rules are analyzed from the background of the principles of finance theory, particularly the interest coverage ratio (ICR). In this context, a comparative analysis is carried out between the Swedish rules and the Anti-Tax Avoidance Directive (ATAD) provision (Art. 4). Adequate regulations on the limitation of interest should cope with the problem of profit shifting, also preserve the freedom of financing, particularly in multinational groups, and should not contain any difference in treatment between domestic and foreign groups.

2013 ◽  
Vol 2 (2) ◽  
pp. 54-60
Author(s):  
Jarmila Lazíková ◽  
Lucia Belková ◽  
Zuzana Ilková ◽  
Jana Ďurkovičová

Abstract Cross-border mergers are regulated by the Directive 2005/56/EC of the European Parliament and of the Council of 26 October 2005 on crossborder mergers of limited liability companies. This article deals with the issue of cross-border mergers of limited liability companies within the internal market of the European Union, more precisely it analyzes the question of the concept of a cross-border merger under the European Union law and its implementation into the national legal order of the Slovak Republic. The legal definition of a cross-border merger under the European Union law comprises three key conditions that must be met cumulatively: cross-border merger is applicable only for a business company formed in accordance with the law of an EU Member State, having its registered office, central administration or principal place of business within the Community, and at the same time business company must be in an eligible legal form and a cross-border element must be given.


2016 ◽  
Vol 24 ◽  
pp. 1
Author(s):  
Marju Luts-Sootak

The number of legal journals published in Estonia has always been limited. On the one hand, the reasons for such scarcity have always rested with the small population, which limits the size of the Estonian legal audience and thus the potential number of readers. On the other hand, the twists and turns of (recent) history have always meant interruptions in the publication of legal journals. Publishing two, three or even four journals at the same time has proven possible only in a very limited number of years. There is usually no reason to talk about decades in this context. All the more reason for us, as the publishers and authors of this journal, to be proud of the publication of yet another issue of our magazine. The first issue of Juridica International – the foreign language companion to the Estonian language journal Juridica, which has been published since 1993 – appeared twenty years ago, in 1996. Professor Paul Varul, Editor-in-Chief of Juridica International from 1996–2015, took a look back at these first twenty years in the editor’s column of our last issue. Juridica International has acted like a seismograph when it comes to reflecting reforms in Estonian law and legal education. When Estonia joined the European Union in 2004, new and significantly more international challenges alreadly came along during the preparatory stage, not to mention the subsequent active participation in the harmonisation processes of European Union law. The foreign language journal, published at and with the means of the Faculty of Law of Estonia’s own national university, the University of Tartu, has given our legal practitioners a chance to express their views among an international community of scholars in a highly visible manner. Juridica International has also played an important part in publishing materials from legal conferences and seminars held in Estonia. Juridica International has become an attractive international journal that reaches well beyond the borders of Estonia and the European Union. This widespread circulation has been assisted by free access online – a decision made by Juridica International years before “open access” became a keyword of global research policy. In the span of only a couple of decades, the journal that first started as the “calling card” of the Faculty of Law at the University of Tartu, mainly introducing and analysing Estonia’s own legal developments, has become an internationally open, peer-reviewed legal journal that is represented in the most acknowledged databases. Since Juridica International is a universal legal journal by its very essence, and this number is not a topically focused conference issue, the geography of both the authors and the topics covered reflect points of interest and concern in the legal science of our region. A special place is reserved for the principal foundations of the European Union and European legal culture in general, and the latest developments in the law of Europe, Estonia, and other countries are addressed as always. One of the obvious causes for concern is Russia’s legal concept, and the legal situation of both it and its neighbours deserves an observant analysis. As the new Editor-in-Chief of the journal, I thank all the editors, colleagues at the editorial board, and the technical team for their continued energy and hard work. For our readers, as well as current and future authors, I hope this issue will be thought-provoking, give you topics to reflect on, and a reason to join us time and again.


2015 ◽  
Vol 64 (2) ◽  
Author(s):  
Marco C. Melle

AbstractOn July, 19th, 2013 the OECD published an „Action Plan on Base Erosion and Profit Shifting“, a catalogue of 15 actions against the tax avoidance strategies of multinational companies. The intention of the present paper is to investigate and evaluate if such a coordination of the national policies is necessary from a constitutional economics perspective. The thesis is that the planned actions against the tax avoidance strategies of multinational companies can strengthen the relation of the national corporation tax revenues to the use of public goods. However, the question arises if for interest and royalty payments an international coordinated withholding taxation would not be preferable and if the European Union additionally should not agree on a common assessment base for corporate taxation.


2017 ◽  
Vol 107 ◽  
pp. 195-209
Author(s):  
Monika Setkowicz

A NOTARY AS A LEGAL PROTECTION AUTHORITY UNDER THE POLISH LAW AND THE EUROPEAN UNION LAWThe paper aims to examine the role of a notary as a legal protection authority in Polish and European Union law systems. The European Union Regulation on Succession has changed the existing role of a notary. It has established the new institution of legal protection — a European Certificate of Succession. The competence to issue a European Certificate of Succession has been entrusted to the notaries beside the courts. This new notarial action has direct effect in the other Member States of the European Union. The scope of legal protection exercised by a notary went beyond national borders and its role has become cross-border.


2017 ◽  
Vol 6 (1) ◽  
pp. 7-11
Author(s):  
Alicja Brodzka

In recent years, the challenge posed by tax fraud and tax evasion has increased considerably and has become a major concern within the European Union. As a consequence, in the European initiatives a special emphasis has been laid on the actions aimed at reinforcing the anti-abuse provisions in bilateral tax treaties, national legislation and EU corporate legislation. Any artificial arrangement carried out for tax avoidance purposes would be ignored and companies would be taxed instead on the basis of actual economic substance. The aim of the article is presenting the European initiative aimed at implementing the automatic mode of the exchange of information on cross-border tax rulings and advance pricing arrangements. The paper investigates if the implemented measure can help Member States to detect certain abusive tax practices taken by companies, and to take the effective actions in response. It also tries to answer the question whether the initiative can result in more transparency and – as a consequence – in much better governance, both at the states’ and the corporations’ level.


2019 ◽  
pp. 155-168
Author(s):  
Dominik J. Gajewski

The objective of this paper is the analysis of the influence of European Union legal regulations, as well as international tax law on the development of tax law applicable to holding companies. It is particularly relevant for entities – holding companies conducting cross-border operation within the European Union. Currently, international holding companies create their tax strategies using internal domestic legal reg ulations, EU tax law, and international tax law (based on numerous agreements on avoiding double taxation). This contributes to creating tax optimisation policies that frequently boil down to international tax avoidance. Undoubtedly, the judicial decisions of the Court of Justice of the European Union have also influenced the development of tax law applicable to holding companies. Due to the lack of harmonisation of tax law applicable to international holding companies, the Court of Justice endeavours to support the processes of standardisation of the tax systems that these entities are covered by.


2019 ◽  
Vol 18 (Vol 18, No 4 (2019)) ◽  
pp. 439-453
Author(s):  
Ihor LISHCHYNSKYY

The article is devoted to the study of the implementation of territorial cohesion policy in the European Union in order to achieve a secure regional coexistence. In particular, the regulatory and institutional origins of territorial cohesion policy in the EU are considered. The evolution of ontological models of cohesion policy has been outlined. Specifically, the emphasis is placed on the key objective of political geography – effectively combining the need for "territorialization" and the growing importance of networking. The role of urbanization processes in the context of cohesion policy is highlighted. Cross-border dimensions of cohesion policy in the context of interregional cooperation are explored. Particular emphasis is placed on the features of integrated sustainable development strategies.


2016 ◽  
pp. 107-122
Author(s):  
Agata Michalska-Olek

The article aims to show the possible ways of judicial redress for claims resulting from sales of goods especially including the issue of jurisdiction and application of the provisions of national law or the provisions of Community law. In the article the provisions of the Convention of 30 October 2007 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters as well as the provisions of regulations of the European Parliament and of the Council were widely discussed. The author discusses in particular the issue related to cross-border contracts for the sales-of-goods within the European Union. Part of the deliberations concerns judicial rulings, in particular judicial decisions issued in cases in which the court shall consider the issue of jurisdiction of its own motion. In the conclusion of the article it is stated that the choice between the national jurisdiction and the jurisdiction of other states will depend on the terms of agreement between the parties as well as the documents related to the transaction, in particular consignment notes (CMR), and the EXW clauses – such a formulation means that the parties agreed to the way of delivery of goods according to the commercial (Incoterms) clauses, determining in such a way the issue of jurisdiction.


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