Tax deduction for group contribution

Supreme Court judgment 28 January 2019, HR-2019-140-A (case no. 18-069096-HRET), civil case, appeal against judgment.

Yara International ASA (Counsel Morten Goller) v. The state represented by the Central Tax Office for Large Enterprises

Justices: Endresen, Møse, Noer, Falch, Lindsetmo

A Norwegian international group, claimed a tax relief for group contributions made to a Lithuanian subsidiary undergoing liquidation proceedings. The Supreme Court found like the Tax Appeals Board and the lower instances that there was no basis for such group relief, as a refusal would not be contrary to Article 31, cf. Article 34 of the EEA Agreement. A majority of three justices placed decisive emphasis on the group's failure to demonstrate that the losses suffered in Lithuania were final, which was a condition for claiming deduction. The minority of two justices considered it decisive that the subsidiary was still receiving interest income, and that this precluded application of the exception for final losses. Dissenting votes 3-2.

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