ECJ: Interprets anti-avoidance clause under the Merger Directive with respect to Danish rules on taxation of exchanges of shares – details

On 5 July 2007, the European Court of Justice (ECJ) gave its decision in the case of Hans Markus Kofoed v. Skatteministeriet (C-321/05). The case concerned the interpretation of the term 'cash payment' (Art. 2(d)) under the Merger Directive (Council Directive 90/434/EEC) and the anti-avoidance clause (Art.11(1)(a)) of the latter Directive in the context of an exchange of shares transaction where such transaction is closely followed by a dividend distribution by the acquiring compa…