Belgian Tax Consolidation Regime Violates EU Parent-Subsidiary Directive (2011/96)

On 13 March 2025, the ECJ ruled that the Belgian tax consolidation rules are incompatible with the EU Parent-Subsidiary Directive (2011/96) insofar as the Belgian rules eliminate the possibility of offsetting group contributions received against the dividend received deduction (John Cockerill (Case C-135/24). The decision is short, but powerful, and applies the methodology that the ECJ developed in the Brussels Securities (Case C-389/18) and Allianz Belgium (Case C-295/21) cases.