23With regard to operating expenses which have a direct connection to the activity pursued by a non-resident in a Member State and which generated taxable income in that country, such expenses should, in principle, be taken into account in that State if residents are taxed on their net income after deduction of those expenses. In its judgment in Gerritse, the Court found that, for the purposes of taking such costs into account, residents and non-residents were placed in a comparable situation. Since the Member State granted residents the possibility of deducting the costs in question, it could not, in principle, preclude their being taken into account for nonresidents (see, to that effect, Gerritse, paragraph 27).
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