Judgment_paragraph 40 · Lexel AB v Skatteverket (C-484/19)

40According to the documents before the Court, Lexel could have secured a deduction of the interest expenses connected with that loan if BF had been established in Sweden. According to the explanation provided by the referring court, a company may deduct intra-group financial transfers made to another company in the same group from its taxable income in the case where that other company is subject to tax in Sweden. In that situation, there is therefore no point in taking a loan from another company in the group with the sole purpose of being able to deduct the corresponding interest expenses. That is why the exception is never raised against the deduction of interest charges related to a loan from another group company established in Sweden. By contrast, the exception is applicable in the case where the beneficiaries of the interest charges are established in another Member State.