The Luxembourg administrative court on the tax qualification of an IFL
Info
Summary
This seminar series, held bi-monthly, focuses on EU and Luxembourg tax law jurisprudence, aiming to enhance understanding of complex legal matters in taxation while linking tax practice with academic insights.
This particular session will examine the Luxembourg administrative court of appeal's decision from 23 November 2023, case number 48125C. The case revolves around a Luxembourg corporate taxpayer that received an interest-free loan (IFL) from its shareholder, with intentions to classify it as debt to deduct notional interest from its taxable income. However, the Luxembourg tax authorities redefined the IFL as equity, disallowing the related interest deduction. Although the initial court upheld the reclassification, the appeals court reversed this, determining the IFL should indeed be considered equity. This ruling is noteworthy not only for its practical implications but also because it relates to ongoing state-aid inquiries by the European Commission involving Luxembourg in the Huhtamäki matter.
During the seminar, PhD researcher Frank Salentiny, guided by Prof. Werner Haslehner, will critically analyze the court's decision, providing context regarding its factual and legal aspects alongside previously established case law.
Speaker
Frank Salentiny, PhD researcher at the University of Luxembourg
Location
Online: The access link for the seminar will be distributed to all registered participants a day prior.
In person:
University of Luxembourg
Campus Kirchberg - Weicker Building
Room B001 (ground floor)
4, rue Alphonse Weicker, L-2721 Luxembourg
Language
English
When
Where
Entrance
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