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The Swedish Supreme Administrative Court (SAC) referred the Lexel case (C-484/19) to the Court of Justice of the European Union (CJEU) in June 2019. The CJEU handed
down its judgment on 20 January 2021.

The case is about one part of the Swedish interest deduction limitation rules (in force 2013-2018). The main rule was that interest expenses from related entities were non-deductible.

The CJEU ruled that the Swedish rules are incompatible with the freedom of establishment and considered to be a restriction on the freedom of establishment which could not be justified on any of the grounds that have previously been accepted by the CJEU.