A request for a preliminary ruling concerning the interpretation of Article 49 EC was filed by the Belgian Courts in a case between the Belgian tax autorities and Société d’investissement pour l’agriculture tropicale SA (SIAT) where the company had been denied tax deductions for service costs in an amount of BEF 28 402 251 paid to a related party in a low tax jurisdiction. Judgement of the Court The answer from the court was in favour of Société d’investissement pour l’agriculture tropicale SA. According to the Court “Article 49 EC must be interpreted as precluding legislation of a Member State, such as the legislation at issue in the main proceedings, under which payments made by a resident taxpayer to a non-resident company for supplies or services are not to be regarded as deductible business expenses where the non-resident company is not subject, in the Member State of establishment, to tax on income or is subject, as regards the relevant income, ... Read more