ECJ: Belgian rules on inclusion of dividends in taxable base followed by 95% deduction insofar as parent company makes profits incompatible with Parent-Subsidiary Directive

On 12 February 2009, the European Court of Justice (ECJ) gave its decision in the case of Belgische Staat v. Cobelfret NV (C-138/07). The Belgian Court of Appeal Antwerp had requested a preliminary ruling from the ECJ on 27 February 2007). For the Advocate General's opinion regarding the case.

The ECJ held that the first indent of Art. 4(1) of the Parent-Subsidiary Directive 90./435/EEC ("Directive") must be interpreted as precluding legislation of a Member Stat…