CJEU Broadens the Scope of the Parent-Subsidiary Directive’s Anti-Abuse Rule
The Court of Justice of the European Union (CJEU) has clarified the scope of the anti-abuse provision in the EU Parent-Subsidiary Directive, confirming that a company’s genuine economic activity does not, by itself, prevent tax authorities from denying an exemption from withholding tax on dividends. In its judgment of 15 October 2026 in Case C-203/25, NEO Group, the Court emphasised the need to assess the full chain of transactions and all relevant circumstances when determining whether an arrangement is abusive.
