On 20 January 2021, the Court of Justice of the European Union (CJEU) issued a judgment concerning whether a Swedish anti-abuse rule for intra-group interest deductions constitutes a violation of the freedom of establishment. The primary rule at issue essentially provides that the deduction of interest expenses in Sweden may be denied if the main reason for contracting a debt obligation between associated companies was for the enjoyment of a significant tax advantage.
The case involved Swed…