Tax authorities issue internal binding information on thin capitalization rules

The tax authorities recently issued an internal binding information (1195/05) on the interpretation of the thin capitalization rules vis-à-vis the European Court of Justice (ECJ) ruling on the Lankhorst-Hohorstcase (C-324/00). The binding information mentions that interpretative decisions of the ECJ, unless otherwise mentioned, have ex tunc effect, i.e. from the entry into force of the relevant tax provision. As a result, the Portuguese thin capitalization rules (both in their c…