The underlying question in this case was whether a Danish parent company could deduct final losses incurred by its Finnish permanent establishment (PE) after the PE was shut down. The CJEU therefore had to decide whether:
- the Marks & Spencer doctrine still applies; and
- if yes, whether it also extends to final losses incurred by foreign PEs.
With this judgment, the CJEU has confirmed that the Marks & Spencer doctrine still applies and that it also extends to final losses incurred by non-resident permanent establishments.
