Treaty between Belgium and Luxembourg – Luxembourg Administrative Court of Appeal decides denial of group tax treatment compatible with non-discrimination provision

On 19 April 2007, the Luxembourg Administrative Court of Appeal gave its decision in Case No. 21979 C on the possibility to opt for group treatment for six Luxembourg subsidiaries of a Belgian parent company. Details are described below.

(a) Facts. Six subsidiaries of a Belgian parent company were established in Luxembourg. One of the subsidiaries was loss-making, whereas the others were profitable. The subsidiaries requested the application of group treatment, …