The ECJ's Decision in A.T. v. Finanzamt Stuttgart-Körperschaften

Abstract

On 11 December 2008, the European Court of Justice gave its decision in A.T. v. Finanzamt Stuttgart-Körperschaften. The Court held that the German legislation in question, which up to 2007 required the use of the book value of the shares transferred in exchange for the new shares received and, therefore, that the fiscal neutrality of the transfer was conditional on the carry-over of such values in the tax balance sheet of the acquiring foreign company, is incompatible with EC law.