Court of Justice 18 June 2026, C-241/25 (Opinion of Advocate General Richard de la Tour delivered on 18 June 2026.)

Also known as

In Case C-241/25, Advocate General Richard de la Tour opines that Article 63 TFEU precludes Swedish legislation requiring a non-resident company receiving dividends subject to withholding tax to recalculate its losses in accordance with Swedish tax rules as a condition for obtaining the same deferred taxation treatment afforded to loss-making resident companies. The Advocate General reasons that such a requirement imposes a disproportionate administrative burden on non-resident companies, goes beyond what is necessary to combat tax avoidance, and that proof of loss-making status calculated under the rules of the company's State of residence—verifiable through mutual assistance mechanisms under Directive 2011/16/EU—is sufficient to satisfy the source State's legitimate interests. The opinion confirms and extends the case-law established in Sofina (C-575/17) and Credit Suisse Securities (C-601/23), and further opines that, where both the non-resident company and its consolidated tax group are undisputedly loss-making, the second and third referred questions concerning consolidated group results are hypothetical.AI