Government Council adopts amendment to exit tax provisions on capital gains to implement National Grid Indus decision

On 22 February 2013, the Luxembourg Government Council adopted an amendment to the exit tax provisions on capital gains. This amendment is brought about by the decision of the European Court of Justice in National Grid Indus (Case C-371/10) in which it, inter alia, was held that the freedom of establishment precludes legislation of a Member State providing for the immediate recovery at the time of transfer, of tax on unrealized capital gains relating to assets of a company…