Is the Belgian Tax Consolidation Regime EU-Proof?

Source abstract

The Belgian tax consolidation regime allows for current-year tax losses to be set-off against the profits of another Belgian group company. Other tax attributes, however, cannot be utilized, which may violate the EU Parent-Subsidiary Directive (2011/96). This does not seem to be the only EU hurdle – the direct participation requirement and holding period may trigger concerns with respect to the freedom of establishment. In this article, the author addresses these concerns and the proposed solutions.