EU Court of Justice Issues Ruling in Danish Beneficial Ownership Cases

Published 26 February 2019

PrintCategory: Taxation / VAT

On 26 February 2019, the EU Court of Justice (CJEU) issued judgments containing preliminary rulings in the Danish beneficial ownership cases.

The CJEU states in the judgments that there is a general principle of anti-abuse in EU law which applies even where there are no domestic or agreement-based provisions providing for such anti-abuse rules. Proof of an abusive practice requires the presence of objective circumstances (e.g. achieving an unfair advantage, such as an unfair tax advantage) and a subjective element (e.g. the fact that a structure has been put in place mainly to achieve such unfair advantage).

Next step: The CJEU judgments will likely have a big impact on international group structures and will also contribute to the interpretation of the anti-abuse principles of EU law and the “beneficial owner” concept.

See the CJEU judgment in the dividend cases here.

See the CJEU judgment in the interest cases here.

Tags:  Beneficial OwnershipDanish Regulation


Also tagged ‘Beneficial Ownership’

2 May 2019 Corporate RegulationFinancial Regulation

Danish Parliament Strengthens Registration Requirements of Ultimate Beneficial Owners

On 2 May 2019, the Danish Parliament adopted amendments to the Danish Companies Act, which implements part of the 5th EU Anti-Money Laundering Directive.

Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AML
13 Mar 2019 Corporate RegulationFinancial Regulation

Proposal to Strengthen the Registration of Ultimate Beneficial Owners

On 13 March 2019, the Danish Government presented a proposal for an amendment of various acts including the Danish Companies Act which implements part of the 5th EU Anti-Money Laundering Directive concerning the registration of ultimate beneficial owners.

Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AML

Other updates

7 Feb 2025 Updates

The Danish government has presented bills for implementing the NIS2 Directive and The CER Directive

On 6 February 2025, the bills for implementing the NIS2 Directive and the CER Directive were presented by the Danish government to the Danish Parliament.

CERCybersecurityNIS2
5 Feb 2025 Impact and ESGUpdates

EU Competitiveness Compass – ESG takeaways

29 January 2025, the EU Commission published its Competitiveness Compass which sets out a compass that will guide the work in the coming five years and lists priority actions to reignite economic dynamics in Europe, according to the communication.

CSDDDCSRDDisclosure RequirementsSFDRSustainability
5 Feb 2025 Taxation / VATUpdates

New advance tax rulings expand the scope of carried interest taxation

According to two new advance tax rulings from the Danish Tax Assessment Council (SKM2025.46.SR and SKM2025.47.SR), under certain circumstances, investments directly in portfolio companies owned by a private equity or venture capital fund may also be subject to taxation under the carried interest taxation scheme.

Venture Capital
3 Feb 2025 Impact and ESGUpdates

The Omnibus Simplification Package and how it may impact EU’s ESG regulation

In the end of 2024, the European Commission President Ursula von der Leyen indicated that existing and future EU ESG reporting obligations may be consolidated into an “omnibus” regulation with the purpose of reducing reporting requirements.

CSRDDisclosure RequirementsSustainability
28 Jan 2025 Corporate RegulationUpdates

New bill regarding changes to access to information on beneficial owners submitted for consultation

On 23 January 2025, a draft bill regarding amendments to the Danish Act on the Central Business Register, the Danish Companies Act, and various other laws was submitted for consultation.

Venture Capital
16 Jan 2025 Impact and ESGUpdates

ESMA consults on proposals to digitalise sustainability and financial disclosures

The European Securities and Markets Authority has published a consultation paper seeking stakeholders’ view on how the European Single Electronic Format can be applied to sustainability reporting for the purpose of easing the burden associated with financial reporting.

ESMARegulatory Technical StandardsSustainability