Re K v Finnish Government

In Re K v Finnish Government (C-322/11 – 11 November) an individual resident in Finland had made a loss on the disposal of a property situated in France. Under the France/Finland double tax treaty the disposal of real estate is taxable in the country where the real estate is situated. As the loss was not connected to a trade and profession and the individual did not own any other property in France he argued that the loss was definitive in France and that he should be allowed to set if off against gains made on the disposal of securities in Finland.

The CJEU accepted that a loss triggered on the disposal of Finnish real estate would have have been available to offset against gains realized in Finland and that therefore the situation constituted a breach of...