CJEU Holds Luxembourg Restrictions on Combining Vertical and Horizontal Consolidation Violates Freedom of Establishment

On 14 May 2020, the Court of Justice of the European Union (CJEU) issued its decision in the case C 749/18, which concerns Luxembourg's fiscal unity regime in relation to tax consolidation of the subsidiaries of a parent company resident in another EU Member State. The case involved three Luxembourg companies held (indirectly) by a French parent; Companies B, C, and D. In 2008, Company B constituted a tax-consolidated vertical group with its subsidiary in Luxembourg, which has since been exp…