Tax Controversy: Trends And Developments In Luxembourg

Introduction

2023 was another year rich in tax controversy, with more than 160 judgments issued in direct tax litigation cases. Whilst this is less than in 2022, several high-profile cases attracted a lot of attention due to their potential broader impact on the Luxembourg financial centre. To address the increasing complexity of tax cases, the lower court (administrative tribunal) created a new chamber focusing (though not entirely dedicated to) appeals in tax matters.

After looking at some statistics, this contribution focuses on a few selected direct tax topics that shaped the Luxembourg tax controversy landscape last year. One should nevertheless not forget about cases relevant to Luxembourg at the European level, in particular the landmark wins in the Amazon and ENGIE state aid cases (case C-457/21 P and joined cases C-451/21 P and C-454/21 P, respectively) and the judgment of the Court of Justice of the European Union (CJEU) concerning the applicability of