The Belgian state acknowledged that companies were not prohibited from transferring more profits than was required to offset a loss in a company in the group. But in that case, Belgian law neutralized such surplus transfers to prevent abuse and distortion of competition on the EU’s internal market, which are objectives that the parent-subsidiary directive allows, the working document said.
The case is John Cockerill SA v. the Belgian state, case number C-135/24, in the European Court of Justice, Luxembourg.
