Bosal is a company which carries on holding, financing and licensing/royalty related activities and which, as a taxpayer, is subject to corporation tax in the Netherlands. For the 1993 financial year, it declared costs amounting to NLG 3 969 339 in relation to the financing of its holdings in companies established in nine other Member States. In an annex to its declaration concerning that financial year, Bosal claimed that those costs should be deducted from its own profits. The inspector refused to allow the deduction sought, and the Gerechtshof te Arnhem (Netherlands), before which Bosal brought an action against the dismissal of its claim, confirmed the inspector’s position. It is in those circumstances that Bosal appealed on a point of law to the referring court. Taking the view that an interpretation of Community law was necessary in order to resolve the dispute before it, the Hoge Raad der Nederlanden decided to stay the proceedings and refer the following questions to ... Read more