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Tax authorities issue internal binding information on thin capitalization rules

|Approved Changes|Portugal
Portugal

The tax authorities recently issued an internal binding information (1195/05) on the interpretation of the thin capitalization rules vis-à-vis the European Court of Justice (ECJ) ruling on the Lankhorst-Hohorstcase (C-324/00). The binding information mentions that interpretative decisions of the ECJ, unless otherwise mentioned, have ex tunc effect, i.e. from the entry into force of…

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