By Amita Chohan
K, a Finnish taxpayer, sought to deduct losses that were incurred in respect of the transfer of immovable property in France from taxable shares that were transferred in Finland. Finnish national legislature permitted the deduction of such losses in respect of the transfer of only resident immovable property. In France the losses could not be taken into account on the sale. The ECJ followed the approach in the M&S case but concluded that the “no possibilities” condition had not been met. The losses never having been available for use locally, it could hardly be said that those possibilities had been exhausted.
This article appears in the JHA December 2013 Tax Newsletter, which also features:
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