CJEU rules that the benefit of Art. 8 (2) of the Tax Merger Directive cannot be conditional upon additional requirements not laid down in the Directive itself

On 16 November 2023, the Court of Justice of the European Union (CJEU) ruled that the application of Article 8(2) of the Tax Merger Directive (the Directive) could not depend on requirements that do not stem from the Directive (GE Infrastructure Hungary Holding, C-318/22). Article 8(2) of the Directive stipulates that in the case of a partial division that falls within the scope of the Directive, the allotment to a shareholder of the transferring company of securities representing the capital of the receiving company shall not, of itself, give rise to any taxation of the income, profits or capital gains of
that shareholder.

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