Statements of the ECJ:
- The German rules on the tax group do not represent any national special law based on a typical consideration of the characteristic of independence.
- Instead of the controlling company, any company in the tax group can, in principle, represented by the tax authorities, but it is also permissible – as implemented in German law – to regard only the controlling company as the “sole taxpayer”.
- The individual controlled companies lose their status as taxpayers as a result of being integrated into the tax group.
- The establishment of a tax group does not necessarily require a subordinate relationship between the controlled company and the controlling company.
- If the controlling company holds a majority stake in the controlled company, acceptance of the financial integration does not also require a majority of voting rights.
Source WTS
See also
- ECJ C-141/20 (Norddeutsche Gesellschaft für Diakonie mbH) – Judgment – VAT group: Controlling member may be the only representative of a VAT group
- C-269/20 (Finanzamt T) – Judgment – Controlling company may be the only taxable person of a VAT group
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