The interest limitation rule in the light of European constitutional law Caroline Heber
By: Heber, Caroline
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Material type: 
ArticleSubject(s): GASTOS DEDUCIBLES | INTERES | REDUCCION | IMPUESTO DE SOCIEDADES | ELUSION FISCAL | PREVENCIÓN | ALEMANIA | UNION EUROPEA
In:
EC Tax Review v. 31, n. 2, April 2022, p. 72-84Summary: This article focuses on the interest limitation rule introduced at the European level as part of the Anti-Tax Avoidance Directive (ATAD). The first section of the article outlines the design and structure of the European interest limitation rule. The second part focuses on the German interest limitation rule, which served as a blueprint for the European rule. In this section, special attention is paid to the ruling of the German Federal Fiscal Court indicating that the German interest limitation rule infringes the constitutionally guaranteed principle of equal treatment. In the light of the ruling of the German Federal Fiscal Court, the subsequent section of the article tests the European interest limitation rule against the European general principle of equal treatment. This section reveals that an anti-BEPS interest limitation rule that applies equally to both domestic and cross-border situations is not in line with Article 20 of the Charter of Fundamental Rights. Against this background, the article raises the fundamental question of whether the theory behind the European internal market allows the application of the interest limitation rule only in a cross-border setting.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 2141-B/2022/2-2 (Browse shelf) | Available | OP 2141-B/2022/2-2 |
Resumen.
This article focuses on the interest limitation rule introduced at the European level as part of the Anti-Tax Avoidance Directive (ATAD). The first section of the article outlines the design and structure of the European interest limitation rule. The second part focuses on the German interest limitation rule, which served as a blueprint for the European rule. In this section, special attention is paid to the ruling of the German Federal Fiscal Court indicating that the German interest limitation rule infringes the constitutionally guaranteed principle of equal treatment. In the light of the ruling of the German Federal Fiscal Court, the subsequent section of the article tests the European interest limitation rule against the European general principle of equal treatment. This section reveals that an anti-BEPS interest limitation rule that applies equally to both domestic and cross-border situations is not in line with Article 20 of the Charter of Fundamental Rights. Against this background, the article raises the fundamental question of whether the theory behind the European internal market allows the application of the interest limitation rule only in a cross-border setting.
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