In the case of Argenta Spaarbank NV v Belgische Staat (Case C-350/11) the CJEU held that ‘article 49 TFEU must be interpreted as precluding national legislation under which for calculation of a deduction granted to a company subject to full tax liability in a Member State the net value of the assets of a permanent establishment situated in another Member State is not taken into account when the profits of that permanent establishment are not taxable in the first Member State by virtue of a double taxation convention whereas the assets attributed to a permanent establishment situated in the territory of the first Member State are taken into account for that purpose’.
Why it matters: The CJEU held that the relevant Belgian legislation contravened article 49 of the Treaty on the Functioning of the European Union.
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