Abstract
This bi-monthly lunchtime seminar series on EU and Luxembourg tax law jurisprudence aims to contribute to a deeper understanding and appreciation of difficult legal questions arising in the field of taxation as well as bridging the gap between tax practice and academic research.
This edition will be dedicated to the decision of the Luxembourg administrative court of appeal of 23 November 2023 n° 48125C. This case concerns a Luxembourg corporate taxpayer which received an interest-free loan (IFL) from its shareholder. The taxpayer intended to treat the IFL as debt and to deduct notional interest from its taxable income. However, the Luxembourg tax authorities recharacterized the IFL as equity and denied the deduction of relating notional interest. While the first instance court confirmed the recharacterization as equity, the court of appeal reversed the judgment and found that the IFL shall be treated as equity. This decision is of particular interest not only due to its relevance in practice but also to the fact that similar legal issues lie at the heart of the currently ongoing state-aid investigation by the European Commission against Luxembourg in the Huhtamäki case.
In the seminar, Frank Salentiny, PhD researcher under the supervision of Prof. Werner Haslehner, will critically discuss the judgment in light of its specific factual and legal background as well as the previous case-law.
Speaker
Frank Salentiny, PhD researcher at the University of Luxembourg
Location
online: The link to join the seminar will be sent to all registered attendees on the business day before the event
in person:
University of Luxembourg
Campus Kirchberg - Weicker Building
room B001 (ground floor)
4, rue Alphonse Weicker, L-2721 Luxembourg
Language
English
